Tesla has begun operating an artificial intelligence training centre in China, marking a step toward localising development of its assisted driving and AI applications in the country, a senior executive said on Friday.
The centre will focus on deploying Tesla’s AI capabilities locally for assisted driving and other AI-driven functions, Vice President Grace Tao said, according to Chinese media outlet Cailian. Tao did not disclose the facility’s computing capacity, saying only that it is sufficient to meet Tesla’s current needs in China.
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Earlier on Friday, Tao said Tesla would actively engage in assisted driving initiatives in China but did not provide a timeline for broader deployment. The comments come amid continued uncertainty over regulatory approval for Tesla’s most advanced driver assistance features.
Last month, Tesla Chief Executive Elon Musk said at the World Economic Forum in Davos that he expected the company’s Full Self-Driving (FSD) system to gain approval in China by February. China Daily later reported, citing a government source, that this expectation was inaccurate.
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Tesla began rolling out an advanced driver assistance system in China on Feb. 25, 2025, offering features similar to FSD in the United States but initially avoiding the FSD branding. The software was later renamed from “Full Self-Driving Capability” to “FSD Intelligent Assisted Driving,” and subsequently to “Intelligent Assisted Driving,” a move widely seen as reflecting regulatory sensitivities.
For several years, Tesla has allowed Chinese customers to purchase the FSD software package for 64,000 yuan ($9,220), though the functionality has been limited and largely unavailable in the market. As a result, Tesla sales staff have often discouraged buyers from selecting the option.
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Globally, Tesla is shifting its FSD business model. The company said it will discontinue the one-time payment option for FSD from Feb. 14, moving entirely to a monthly subscription model. In its fourth-quarter earnings report released on Jan. 28, Tesla disclosed for the first time that FSD had about 1.1 million paying users, representing roughly 12% of its cumulative vehicle sales.
The launch of the China-based AI training centre underscores Tesla’s efforts to localise technology development as it seeks regulatory approval and wider adoption of assisted driving features in one of its most important markets.