Tesla FSD Enters China: Approval in Progress, Competition Heats Up in the Smart Driving Market

On May 21, Tesla announced on its official social media that its Full Self-Driving (FSD) Supervised system is coming soon to multiple countries and regions, including China. The company is actively working on regulatory approvals in accordance with local laws, and future availability may vary by vehicle model and hardware configuration.

FSD Coming to China: Approval and Compliance Are Key

On May 21, Tesla announced that its FSD Supervised system is coming soon to multiple countries and regions, including China. Internal information shows that Tesla has already pushed the internal test version of FSD V14.x to a select group of employee vehicles in China, all equipped with HW4.0 hardware. The system is now named “Tesla Assisted Driving (TAD)” in the Chinese market.

According to UN R-171 regulations, FSD Supervised is classified as a Level 2 (ADAS) system, meaning drivers must remain fully attentive, be ready to take over at any time, and are solely responsible for all driving behavior. This differs significantly from Tesla’s long-term vision of a system that can fully take over.

When asked about the specific timeline and details for FSD’s launch in China, Tesla China stated:

“No official response, and no further information to share.”

Illustration of Tesla FSD Supervised Interface

Regulatory Hurdles Are Being Gradually Overcome

In February 2025, Tesla briefly rolled out a limited version of FSD in China, offering basic urban road assistance. However, the feature was removed just a week later.

Since the second half of 2024, Tesla and CEO Elon Musk have repeatedly hinted at the upcoming launch of FSD in China, with timelines shifting from “end of 2024” to “Q1 2025,” and now expected in “Q3 2025.”

To comply with local regulations, advanced driving features in China must meet strict requirements, including data security compliance, mapping qualifications, system safety standards, and OTA update regulations.

On December 31, 2024, Tesla (Shanghai) Co., Ltd. obtained a Class-B surveying and mapping qualification from China’s Ministry of Natural Resources. It is widely believed that this is related to Tesla’s cooperation with Baidu, a Class-A mapping service provider.

In terms of data localization, Tesla passed the four national automotive data security compliance tests in April 2024, becoming one of the first foreign automakers to do so. Public data shows Tesla has already collected over 3 billion kilometers of driving data in China and has optimized its system for unique local scenarios such as mixed traffic and unprotected left turns.

Global Scrutiny, Local Pressure: Dual Challenges Ahead

Globally, regulators remain cautious about FSD. In October 2025, the U.S. National Highway Traffic Safety Administration (NHTSA) announced an investigation into approximately 2.88 million Tesla vehicles equipped with FSD, focusing on potential safety risks in low-visibility conditions such as glare, dust, and delayed hazard detection.

In China, the first batch of L3 conditional automated driving approvals was issued in December 2025, covering only two models—Deepal SL03 and ARCFOX αS—and limited to specific geographic areas.

Tesla’s sales have also been affected. In 2025, global deliveries fell 8.6% year-over-year to 1.636 million vehicles, marking the first time its annual EV sales were surpassed by BYD, which sold 2.256 million BEVs globally. In China, Tesla’s wholesale registrations from January to November 2025 dropped 7.4% year-over-year, with October sales hitting a three-year low of just 26,000 units.

Global BEV Sales Comparison in 2025 (10K Units)

• BYD: 225.67
• Tesla: 163.6

Source: Public Financial Reports

Intensifying Competition in China’s Smart Driving Market

While FSD’s entry into China has drawn significant attention, the market is no longer an open field.

Chinese automakers and tech companies have made major progress in data collection, localized training, and real-world deployment, continuously improving user experience.

A head of a smart driving company in Shenzhen commented:

“From a supply chain perspective, FSD’s entry into China won’t bring major changes. And in terms of overall capability, Tesla FSD no longer holds a unique advantage over local players.”

With subscription-based pricing and growing regulatory and competitive pressures, FSD’s road ahead in China remains full of challenges.