Tesla prepares to roll out FSD features in China, report says

• Tesla is preparing a software update for Chinese customers to offer FSD features similar to those available in the US market, according to Bloomberg.
• The features will be deployed to customers who paid RMB 64,000 ($8,830) for the FSD software package.

Tesla (NASDAQ: TSLA) is preparing a software update for Chinese customers to offer FSD (Full Self-Driving) features similar to those available in the US market, Bloomberg said in a report today, citing a person familiar with the matter.

The update, planned for the next few days, will allow Tesla owners to use the driver-assistance features on city streets, said the person familiar with the matter, who asked not to be named.

Tesla plans to tell customers that the system will guide vehicles to exit ramps and intersections and can recognize traffic signals, make turns and handle lane and speed changes, according to Bloomberg.

These features will be deployed to customers who paid RMB 64,000 ($8,830) for the FSD software package, the report said, noting that while the company markets its features as self-driving, they require constant human supervision and frequent interventions.

Tesla has drafted wording for the software update that warns that the timing and effectiveness of certain features may vary by model and configuration, Bloomberg’s report said.

The city streets feature will be rolled out on select models and expanded gradually, the person said, according to the report.

Separately, Reuters later cited a company notification and two people with direct knowledge of the situation as saying that Tesla planned to update its car software in China to add driver-assistance features to help drivers navigate city streets.

Tesla notified Chinese software users on Monday that it planned to update its autopilot feature, but retracted the notification within minutes, Reuters said, citing multiple posts on Chinese social media.

Two people familiar with the matter told Reuters the notification was authentic but sent prematurely.

One of the people familiar with the matter said the update would make the software a less advanced version of the FSD feature available in the US due to insufficient data training on Chinese roads and traffic rules.

Tesla CEO Elon Musk said on an earnings call last July that the company would likely receive regulatory approval to launch FSD in other markets, such as Europe and China, by the end of 2024.

On September 5, 2024, Tesla’s AI team’s account @Tesla_AI social media platform X said the EV maker planned to launch FSD in China and Europe in the first quarter of 2025, subject to regulatory approval.

In China, all Tesla vehicles come with the free Basic Autopilot (BAP) software.

Although FSD has not yet actually made its way to China, Tesla has been allowing owners to purchase the software for a one-time fee of RMB 64,000.

In addition to FSD, Tesla also offers Enhanced Autopilot (EAP) in China at half the price of FSD.

At the end of last month, Musk said on Tesla’s fourth-quarter earnings call that one of the biggest difficulties for FSD in China is bus lanes.

“There’s literally hours of the day you’re allowed to be there or not be there, and if you accidentally go into that bus lane at the wrong time, you get an automatic ticket instantly,” he said on the call. “So it’s kind of a big deal, bus lanes in China.”

He also mentioned that Tesla faces a dilemma when it comes to algorithm training; China won’t allow Tesla to transfer training data outside its borders, and the US government won’t let Tesla train in China.

($1 = RMB 7.2473)

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