SHANGHAI, China – Tesla has rolled out an anticipated update to its autopilot software in China, adding a city navigation feature. However, Chinese Tesla owners have voiced frustration, saying the update does not meet the expectations set by CEO Elon Musk’s earlier promises.
New Autopilot Features in China
Tesla announced the update via its official app on Monday, February 24. The new capabilities include automatic lane-changing based on speed and route, detection of traffic lights at intersections, and decision-making for turning. Additionally, an in-car camera will monitor driver attention to ensure safety.
These features resemble Tesla’s “Full Self-Driving” (FSD) technology available in the U.S., but they remain less advanced in China. A source familiar with the matter stated that insufficient data training on Chinese roads and local traffic regulations has limited the software’s capabilities in the region.
FSD is an advanced driver-assistance system powered by artificial intelligence to manage complex driving conditions. Meanwhile, Tesla’s Autopilot system is designed for more routine driving scenarios.
Challenges in Bringing Full FSD to China
Elon Musk has expressed his desire to introduce full Autopilot and FSD systems in China. However, he acknowledged that regulatory and technological restrictions from both the U.S. and Chinese governments have made the process difficult. Originally expected to launch by the end of 2024, Tesla has now delayed the full rollout until a later date.
Customer Discontent Over Limited Capabilities
Many Tesla owners in China took to social media to express their disappointment. They noted that the update does not live up to Tesla’s long-standing marketing claims. Additionally, several Chinese automakers now offer similar or superior driver-assistance features at a lower cost—or even for free.
Lu Panpan, a Tesla owner in Zhejiang province, shared his frustration. He purchased FSD for 56,000 yuan ($7,720) when he bought his Long Range Model 3 in 2019. “Tesla has no choice but to deliver a knowingly restricted system,” he said. “It is hard for Tesla to catch up with the smart-driving capabilities of Chinese EVs, which makes less sense given Tesla’s high pricing.”
Tesla Losing Ground to Chinese Competitors
Tesla’s delays in rolling out full FSD have allowed domestic competitors such as Huawei, Xiaomi, and BYD to gain an edge in the Chinese market. These companies have developed smart-driving technologies that better navigate China’s complex city traffic.
Tesla charges nearly $9,000 for access to a limited version of its FSD software, in addition to the base cost of its vehicles, which start at $32,000. In contrast, Xiaomi’s SU7 electric sedan, priced at $29,700, offers enhanced smart-driving features for free. The SU7 has even outsold Tesla’s Model 3 in China on a monthly basis. BYD has also begun providing autonomous-driving features for free in most of its models, including budget-friendly options starting at $9,555.
Tesla’s latest autopilot update aligns with the mid-tier version of BYD’s “God’s Eye” system, which uses lidar and advanced computing to create 3D images of surroundings and assist in obstacle navigation. BYD offers this technology in its premium Denza brand and high-end Dynasty and Ocean series models.
Regulatory Hurdles and Data Restrictions
Musk has stated that Tesla is awaiting regulatory approval from Beijing to deploy FSD more comprehensively in China. However, under current Chinese laws, level-two autonomous driving features—such as Autopilot and FSD—do not require government approval, as they still necessitate human supervision.
Approval is only required for level-three and higher autonomous driving technologies, which allow for full hands-free operation under specific conditions. Tesla is seeking broader permissions due to its reliance on extensive data collection.
One major challenge Tesla faces is China’s strict data regulations. The Chinese government heavily restricts the transfer of vehicle data abroad. Such data is essential for training self-driving systems, a factor that has slowed Tesla’s development of fully autonomous capabilities in the country.
To overcome this obstacle, Tesla has been working on establishing a data center in China. This facility would allow the company to train its autonomous-driving algorithms locally, reducing reliance on international data transfers.
Future Prospects for Tesla in China
Despite regulatory setbacks, Tesla remains committed to expanding its self-driving technology in China. The company’s plans to build a data center could help it comply with local data laws and advance its FSD capabilities.
However, as Chinese automakers continue to innovate and offer competitive smart-driving features at lower costs, Tesla must act quickly to maintain its market position. Whether the company can secure approval for its full FSD rollout—and whether it can justify its premium pricing against local rivals—remains to be seen.
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