Tesla is working with Chinese tech giant Baidu to improve the performance of its advanced driving assistance (ADAS) system in China, two people with knowledge of the matter said, after a recent update drew customer criticism.

Tesla (NASDAQ:TSLA) is reportedly working with Baidu (NASDAQ:BIDU) to improve the performance of its advanced driving assistance system in China. Sources told Reuters that Baidu has a group of engineers from its mapping team working with Tesla (NASDAQ:TSLA) employees in Beijing to better integrate Baidu's (NASDAQ:BIDU) navigation map information.

Tesla China is working on a cheap Model Y variant that might launch later this year to boost demand if the refreshed Model Y sales disappoint

Tesla is preparing to launch a couple of new more affordable electric vehicles and the first one is expected to basically be a stripped-down Model Y, according to a new report from China. We have been reporting on this new vehicle program from Tesla for a while now.