According to foreign media reports, Tesla’s fully autonomous driving technology (FSD) may be delayed in the approval of China due to the risks of being involved in the escalating U.S.-China trade dispute.
The Tesla FSD system can automatically realize the vehicle’s acceleration, steering, braking and lane change functions, but it still requires the driver to remain alert at all times and not leave the steering wheel with both hands. FSD is based on a machine learning system that trains algorithms through billions of hours of video data to make driving decisions in real time.
People familiar with the matter revealed to the Financial Times that although there have been previous signs that Tesla will obtain permission to conduct large-scale tests of “fully autonomous driving” (FSD) technology in China in the second quarter of 2025, Chinese regulators are currently No clear approval timetable was given.
Obtaining this license is crucial for Tesla to launch semi-autonomous driving capabilities in China, which not only increases its self-driving software subscription revenue, but also helps boost its decline in sales in China, the world’s largest automotive market.
In September 2024, Tesla announced plans to launch FSD technology in China and Europe in the first quarter of 2025, with regulatory approval.
But as US President Trump launches a trade war with China, Tesla’s plan may be postponed and the prospects are worrying. This month, after the U.S. imposed a 10% tariff on all Chinese imported products, the Chinese government also imposed retaliatory tariffs on a range of U.S. goods. Under such a tense trade situation, the approval of Tesla’s autonomous driving license has also become confusing.
If trade negotiations go smoothly, Tesla’s self-driving license in the Chinese market may still be approved soon, a source said. But another person familiar with the matter said some insiders believe that Tesla is unlikely to get approval quickly unless the trade negotiations make “a major breakthrough or concession.”
In response to the above reports, Tesla US, Tesla China and Musk did not respond to requests for comment.
But this situation shows that Musk, as a key adviser and inaugural donor, has a close relationship with Trump, may have a negative impact on the world’s richest man and some of his business empires, including Tesla. Business in the most important Chinese market outside the United States.
Musk said last month that Tesla’s current deployment of FSD in China is “a bit of a dilemma” and is trapped in the cracks between China and the United States’ strict data security rules.
Musk said on Tesla’s recent earnings call: “China does not allow us to transmit training videos outside China at present. And the US government does not allow us to conduct tests and training in China. This is a dilemma.” Therefore, These challenges will remain even if Chinese regulators approve Tesla’s FSD license.
Musk built Tesla’s largest super factory in Shanghai in 2018, a move widely believed to have accelerated the expansion of China’s electric vehicle industry.
But since then, with lower prices and rapid launch of more luxurious configuration models, Chinese local automakers have surpassed Tesla. Tesla now hopes to highlight the differentiated advantages of its products and improve profitability by deploying FSD in China ($99 per month in the United States).
Data from the China Passenger Car Market Information Joint Conference showed that in January this year, Tesla accounted for 4.5% of China’s new energy vehicle sales, while BYD invested by Buffett accounted for 27%, and BYD this month The “Eye of God” advanced driving assistance system is launched, and its leading advantage may be further expanded.
Unlike Google’s autonomous driving technology company Waymo, Tesla’s FSD has not been approved for “fully autonomous driving” operations in the United States. Musk promised that by June this year, Tesla will drive unmanned on Texas roads.
However, Musk has never fulfilled his promise on time, and Tesla is also facing investigations from US regulators involving FSD-related accidents and Tesla’s publicly claimed FSD functionality.
In July 2024, Musk admitted that “the past predictions for achieving fully autonomous driving were too optimistic”, but then predicted that Tesla’s FSD would “surpass human driving levels” by the end of this year.