Tesla has introduced an update to its autopilot software in China, adding city navigation features. The upgrade includes automatic lane changes, traffic light recognition, and turn decisions, along with in-car cameras to monitor driver attention. While the system mirrors Tesla’s Full Self-Driving (FSD) software available in the U.S., it lacks comparable sophistication due to differences in China’s traffic rules and the limited training of AI systems on local roads.
Elon Musk, Tesla’s CEO, has aimed to fully implement the company’s FSD technology in China. However, regulatory hurdles in both nations and technical challenges have delayed the rollout, pushing an initial target of 2024 to later this year. Despite this update, many Tesla owners in China remain disappointed, pointing to how local competitors now offer similar or better features at more affordable prices—or even for free.
Brands like BYD, Xiaomi, and Huawei are leading the race in smart-driving technology. For example, Xiaomi’s electric sedan, priced below Tesla’s Model 3, includes free city navigation. Meanwhile, BYD provides advanced autonomous driving features in entry-level models. Tesla owners, such as Lu Panpan, who invested over $7,700 in FSD software in 2019, have voiced frustration, saying Tesla’s offering feels restrictive compared to the cutting-edge systems in local cars.
Tesla continues to face challenges in the Chinese market, including gaining approval from regulators for a full-fledged FSD rollout. Current laws categorize Tesla’s technology as Level 2 driving assistance, requiring human intervention, unlike the more advanced Level 3 systems. Additionally, Tesla’s aim to use local driving data to refine its AI is complicated by China’s strict data-transfer regulations. To address this, the company is working on a data center to train its systems locally. However, with growing competition and stringent regulatory requirements, Tesla’s efforts to lead in China’s advanced EV segment appear uphill.
