Challenges and Opportunities for Tesla's FSD Approval in China

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Oct 18, 2024
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Tesla's Full Self-Driving (FSD) system is yet to receive regulatory approval in China. The evaluation process is ongoing, as informed by sources familiar with the matter. While the Chinese government supports preliminary testing of FSD under current laws, final approval is pending.

Elon Musk, Tesla's CEO, has applied for permission to use certain video data for system training, promising rigorous scrutiny of this data by relevant authorities. Earlier this year, Tesla met four compliance requirements related to automotive data security in China, which was seen as a significant milestone for FSD's entry into the world's largest auto market. However, the timeline for FSD deployment in China remains uncertain.

In a recent earnings call, Musk expressed optimism that FSD would be approved in Europe, China, and other countries by the end of the year. Reportedly, Tesla has begun testing an advanced driver-assistance system on specific streets in Shanghai.

Currently, Tesla's FSD has advanced to version 12. In China, Tesla collaborates closely with Baidu Maps due to the lack of map surveying qualifications, allowing for 3D lane-level navigation. The latest FSD version 12.4 introduces new features like visual attention monitoring and improved alert systems.

The potential entry of Tesla's FSD into China has sparked mixed reactions. Some believe it will enhance Tesla's competitiveness in China's smart electric vehicle market. However, others argue that launching a robotaxi service in the country may face unforeseen challenges. Huawei officials highlighted Tesla's strength in data volume and FSD capabilities, but noted that Huawei's use of lidar offers a slight edge in perception capabilities within China.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.