Tesla inches closer to Full Self-Driving in China

CEO Elon Musk has said Tesla could have "unsupervised FSD" in almost every market in 2025

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Tesla cars are seen at a showroom for the US electric vehicle maker at a mall in the Changning district of Shanghai on February 25, 2025.
Tesla cars are seen at a showroom for the US electric vehicle maker at a mall in the Changning district of Shanghai on February 25, 2025.
Photo: Hector Retamal/AFP (Getty Images)
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Tesla (TSLA-8.09%) on Tuesday released an update to its driver assistance software in China as Elon Musk’s automaker moves closer to launching self-driving capabilities in the intensely competitive market.

Some drivers in China will be able to use Tesla’s Autopilot on city streets and access updated maps, the company told customers. The software can recognize traffic lights at intersections and change lanes.

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The update is currently only available for customers who have purchased access to Tesla’s driver assistance packages for about $8,800 and whose cars are compatible. An in-car camera will monitor drivers to ensure their eyes are on the road.

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The features are less advanced than those included in Tesla’s “supervised” Full Self-Driving (FSD), which has yet to be approved by China’s regulators. Last April, Musk pushed back a meeting with India’s prime minister to meet with Chinese authorities such as Premier Li Qiang in a push to get approval. Later, some restrictions on Tesla were lifted.

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Musk has repeatedly described autonomy as critical to the future of Tesla. In the U.S., Tesla is planning to launch a ride-share service later this year using Model Y and 3 vehicles equipped with what the company calls “unsupervised” FSD.

“I think we’ll have unsupervised FSD in almost every market this year, limited simply by regulatory issues, not technical capability,” Musk said on a recent earnings call.

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U.S. officials don’t allow Tesla to train its technology in China, Musk noted on the call. Chinese authorities don’t allow Tesla to transfer video outside of the country to train its models, so the company relies on videos uploaded online for training.

Tesla sent some U.S. engineers to China earlier this month to prepare the company to deploy FSD, according to local reports. The engineers are also expected to optimize Tesla’s algorithms for local roads based on data collected from specific roads in China.

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The delays have prevented Tesla from using its most advanced tech to compete with rivals. About 15 million new cars equipped with level two autonomous driving capabilities or above are expected to be sold in 2025, according to South China Morning Post.

BYD (BYDDY+2.11%) earlier this month said all of its models priced above $13,688 now come equipped with the firm’s “God’s Eye” software, offering assisted driving software to mass market buyers. Chinese startup Xpeng’s features are available in most of China, while rivals like Nio (NIO-1.40%) and Xiaomi (XIACF+7.28%) claim to offer some driver-assistance software.