Made-in-China Tesla cars wait to be shipped overseas outside its factory in Shanghai. Photo: cnsphoto

US-based electric vehicle (EV) manufacturer Tesla announced plans to launch its driving assistance system, Full Self-Driving (FSD) service in China and Europe in the first quarter of 2025, pending regulatory approval. 

The move is expected to intensify competition in China's automotive market, known for its innovations in autonomous driving.

The news was shared by Tesla's AI team via their @Tesla_AI X account on Thursday, highlighting a major push by Tesla to compete with its rivals in advanced autonomous driving technology.

Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Thursday that Tesla's FSD system could bring significant innovation and competition to the Chinese EV market. 

Unlike many Chinese manufacturers who focus on vehicle-to-everything (V2X) technology for autonomous driving, Tesla's FSD employs an end-to-end neural network approach, which represents a different path to achieve autonomous driving, Cui said.

If Tesla launches FSD in China, it will not only boost its own sales but also enhance competition within many Chinese EV makers, Cui added.

In addition to its plans for China and Europe, Tesla also revealed upcoming enhancements to its FSD service, including the release of v12.5.2 in September. This update will introduce new features such as End-to-End network on highway, Smart Summon, and autopark and FSD features on the new Cybertruck model.

Consumer interest in Tesla's FSD and autopilot features is expected to grow, with potential buyers attracted by the futuristic and sci-fi-like demonstration of the technologies. "If FSD becomes available in China, I would be more willing to buy a Tesla," a vehicle owner surnamed Zhang told the Global Times on Thursday.

However, the high cost of Tesla's FSD subscription could deter buyers. In China, adding FSD to a Tesla Model 3 costs 64,000 yuan ($9,015), while in the US, the price is currently set at $8,000.

Tesla set a record for its highest monthly sales in China this year in August, with 63,000 units sold in the Chinese mainland market, a 37-percent increase from the previous month. A total of 86,697 vehicles were delivered in the Tesla Gigafactory Shanghai also, up 17 percent month-on-month, according to preliminary data from the China Passenger Car Association.

During Tesla's second-quarter earnings call in July, CEO Elon Musk said the company would soon seek regulatory approval for supervised FSD in China. He noted that the autopilot program is set to expand to Europe and other markets.

Autopilot, one of Tesla's key selling points, is an advanced driver assistance system that enhances safety and convenience. When used correctly, autopilot can reduce driver workload, and supervised FSD will be able to drive with minimal intervention, continuously improving over time, according to the company website.

Global Times