Shanghai, February 24, 2025 – Tesla Inc. is preparing a software update for its Chinese customers that will enable advanced driving-assistance features similar to its full self-driving (FSD) capabilities available in the United States.
The update will be available to Tesla owners who have paid 64,000 yuan (approximately $8,832) for the FSD package. It is expected to allow drivers to use enhanced autonomous features on city streets. Initially, the update will roll out on select models, with plans to gradually expand the service across Tesla’s lineup in China.
This development comes as Tesla continues to navigate regulatory hurdles following multiple investigations into the safety and security of its FSD software, which has been linked to several accidents and crashes. Tesla has not yet responded to Reuters’ request for comment on the planned update.
The move also follows recent actions by Chinese electric vehicle manufacturer BYD, which began offering advanced autonomous driving features on most of its models earlier this month. This competitive pressure may be influencing Tesla’s push to deliver its own autonomous technology in the rapidly growing Chinese market.
Reuters had previously reported that Tesla was exploring options to license its FSD technology to other automakers in China and might eventually offer it as a monthly subscription service. The strategic initiative is also seen as a way for Tesla to mitigate slowing demand in the U.S., where economic uncertainty has tempered consumer spending on big-ticket items.
Last month, Tesla reported record sales in China, with more than 657,000 vehicles delivered in 2024—even as its global annual deliveries declined for the first time. CEO Elon Musk has long championed the company’s self-driving ambitions, and some analysts believe that his close ties with U.S. President Donald Trump could help accelerate regulatory approvals.
As Tesla seeks to strengthen its position in China’s competitive EV market, the rollout of enhanced autonomous features is expected to be a key component of its growth strategy, even as it works to address ongoing safety and regulatory challenges.
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