According to Bloomberg, Tesla is preparing a software update for Chinese customers to provide driving assistance features similar to its "Full Self-Driving" (FSD) offered in the US market. At this stage, the system still falls under the L2 category.
Tesla plans to inform customers that the system will guide vehicles into exit ramps and intersections, recognize traffic signals, make turns, and handle lane changes and speed variations. These features will be deployed for customers who have paid CNY 64,000 (USD 8,800) for what Tesla refers to as FSD. Sources familiar with the matter said that the feature will initially be launched on some models and gradually expanded.
While Tesla markets this feature as fully autonomous driving, it still requires continuous human supervision and frequent intervention. CEO Elon Musk has been seeking regulatory approval for years to allow FSD to operate on Chinese roads and plans to launch the system in China this year.
As early as September 2024, Tesla announced plans to introduce FSD technology in China and Europe in 2025 Q1, subject to regulatory approval.
It is said that the current China-US trade relations may have impacted the approval progress of Tesla's FSD license.
Data from the China Passenger Car Association shows that in January 2025, Tesla's share of new electric vehicle sales in China was only 4.5%, while BYD's share was 27%. Moreover, BYD's recently launched advanced driving assistance system may further expand its leading position.