Tesla is preparing to roll out a self-driving software update for customers in China, offering driving-assistance capabilities similar to its Full Self-Driving (FSD) features available in the United States, Bloomberg News reported on Monday, citing a person familiar with the matter.
The update will be available to customers who have purchased Tesla’s FSD package for 64,000 yuan ($8,831.73), the report said. The software will enable driver-assist features for city streets and will initially be introduced on select models before being gradually expanded.
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Tesla’s self-driving features have faced regulatory scrutiny over safety concerns, with authorities investigating multiple accidents involving the company’s driver-assistance software. The potential introduction of FSD in China comes as the electric vehicle (EV) maker faces increased competition from local manufacturers, including BYD, which began offering advanced autonomous driving features on most of its models earlier this month.
“The self-driving update will allow Tesla owners to use driver-assist features on city streets,” Bloomberg reported, citing its source. The report also noted that Tesla plans a phased roll-out of the software.
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Tesla has previously considered licensing its FSD technology to other automakers in China and may offer it as a monthly subscription to customers, Reuters reported earlier. The move could help Tesla offset slowing demand for EVs in the United States, where economic uncertainty has led to a decline in consumer spending on big-ticket items.
In 2024, Tesla’s sales in China reached a record high of over 657,000 vehicles, despite facing intense competition in the market. The company’s global deliveries, however, fell for the first time on an annual basis.
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Tesla CEO Elon Musk has repeatedly promoted the company’s self-driving technology, while analysts suggest that his ties with former U.S. President Donald Trump could play a role in securing regulatory approvals for Tesla’s autonomous driving software.