Tesla CEO Elon Musk said the automaker expects to secure full regulatory approval for its Full Self-Driving (FSD) software in China early next year, marking a key step toward expanding its driver-assistance technology in one of the world’s most competitive electric vehicle markets.
“We have partial approval in China, and hopefully we’ll have a full approval in China around February or March or so,” Musk told shareholders at Tesla’s annual general meeting.
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China remains a critical market for Tesla, but the company’s market share has dropped to 8% in the last quarter, down from a peak of 15.4% in the first quarter of 2023. Local manufacturers, including BYD and Xpeng, have drawn consumers with advanced driver-assistance features often offered at no additional cost.
Tesla’s FSD software received partial approval in China in February, allowing limited functions compared to its U.S. counterpart. The system currently cannot change gears autonomously, preventing vehicles from completing an entire trip from one parking space to another without driver intervention. It has also faced challenges identifying some Chinese traffic signs.
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Despite these limitations, many Chinese Tesla owners have paid 64,000 yuan ($9,000) for the FSD feature, expecting full functionality to follow soon. A full rollout could help Tesla rebuild trust among its Chinese customer base and strengthen its competitiveness in the region’s growing autonomous driving market.