- Tesla’s stock surged over 16% after the company cleared a major hurdle to roll out its Full Self-Driving (FSD) advanced driver-assistance technology in China
- Tesla reportedly struck a deal with Chinese tech giant Baidu to access its mapping and navigation technology, which is required for intelligent driving systems to operate on public roads in China
- The breakthrough for Tesla to bring its FSD technology to China marks a significant win for the company amid intense competition in the Chinese electric vehicle market from local rivals like BYD, Nio, and XPeng
Tesla’s stock jumped over 16% as the company cleared a key hurdle to roll out its Full Self-Driving technology in China. The Chinese authorities removed restrictions on Tesla‘s cars after they passed data security requirements, paving the way for the advanced driver assistance system to be enabled.
What is Full Self-Driving?
Full Self-Driving (FSD) is an upgrade to Tesla’s Autopilot driver assistant system. Tesla has offered FSD in China for years but with limited functionality that restricts it to automated lane changes. FSD is not yet fully autonomous driving, but Tesla markets it as having full self-driving capabilities. This has led to lawsuits in the US for false advertising.
Overcoming Data Security Concerns in China
Data security concerns have prevented Tesla from fully rolling out FSD in China until now. Tesla also reportedly reached a deal with Baidu for mapping data, which is required for autonomous driving systems in China. This license will allow Tesla to legally operate FSD on roads and gather traffic data.
Increased Competition in China
The FSD rollout is a major win for Tesla as competition heats up in China. Chinese rivals like BYD, Nio, and XPeng have rapidly grown in recent years. BYD briefly surpassed Tesla in EV sales last year before deliveries plunged in early 2023.
The key takeaway is that Tesla has cleared regulatory hurdles to roll out its advanced FSD technology in China. This driver assistance system is not fully autonomous yet, but the milestone shows Tesla is making progress despite intensifying competition.
