Tesla’s FSD Launch in China Heats Up Competition with Domestic EV Makers Tesla has officially launched its Full Self-Driving (FSD) system in China, marking a significant milestone in the company’s global expansion. The rollout, which received regulatory approval just one week after Elon Musk’s visit to Beijing as part of a U.S. delegation led by President Donald Trump, is set to intensify competition with China’s domestic electric vehicle (EV) manufacturers. The FSD system, now available in China and nine other countries including the United States, Canada, Mexico, Australia, New Zealand, South Korea, and the Netherlands, represents a major step forward in autonomous driving technology. The decision to approve FSD in China comes amid growing interest in level three (L3) automated driving, which has been legal in the country for several years. Tesla’s entry into the market is expected to accelerate innovation in autonomous driving, according to Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank. Ng noted that Trump’s visit to China likely expedited the regulatory process, creating a more favorable environment for Tesla’s expansion. “Tesla’s entry will drive greater competition and accelerate innovative development of [autonomous driving] in China,” he said. To prepare for the FSD rollout, Tesla has been operating a local artificial intelligence data center in China, which supports localized training capabilities for the system. This approach is crucial for adapting the technology to China’s specific road conditions and regulatory requirements. The company’s localisation strategy is also seen as a key factor in regaining market share in the country. Tesla’s market share in China declined to 6 percent in 2025 from a peak of 16 percent in 2020, according to Ng.#donald_trump #tesla #elon_musk #byd #nio
