Tesla Is Preparing To Launch Its FSD Service In China, According To Insiders

Informed sources have revealed that Tesla is preparing a software update for its Chinese customers to provide driving assistance features similar to the "Full Self-Driving" (FSD) capabilities available in the U.S. market.

According to the sources, Tesla plans to roll out an update soon that will allow owners to use driving assistance features on urban roads. Tesla intends to inform customers that the system will guide vehicles onto exit ramps and through intersections, recognize traffic signals, handle turns, and manage lane and speed changes.

These features will be deployed to customers who have already paid 64,000 yuan ($8,800) for what Tesla refers to as FSD. The sources noted that the functionality will initially be available on select models and gradually expand to others.

The adoption of driver-assistance systems is on the rise in China, with BYD Co., a leading electric vehicle manufacturer, recently unveiling a new system branded as "God's Eye." The company is providing varying levels of functionality and hardware as standard equipment on vehicles, with prices beginning as low as 69,800 yuan.

In fact, in April of last year, Musk already visited Beijing to discuss the implementation of FSD in China with senior officials, including Premier Li Qiang.

During the visit, Tesla secured a partnership with Chinese tech giant Baidu Inc. for mapping and navigation services, but at Tesla's quarterly earnings call, Musk still highlighted the company's significant regulatory hurdle in China, noting that the Chinese government currently prohibits Tesla from transferring training video data outside the country. At the same time, U.S. government restrictions prevent Tesla from utilizing advanced GPUs in China for essential computational training.

Musk explained that these constraints have created a complex scenario for deploying FSD in the Chinese market. He added that Tesla aims to launch a supervised version of FSD in China by 2025 but acknowledged that preparing the technology for this massive market has been particularly challenging due to these data and training limitations.

However, this billionaire emphasized that FSD is possible in every market. In the U.S., the unsupervised version of FSD is expected to launch this year, with nationwide availability by next year. He thinks many countries around the world are also expected to see the rollout of the unsupervised FSD by the end of next year.

Previously, Tesla has already introduced FSD in Mexico, marking the first expansion of the technology beyond the U.S. and Canada.