Despite the tensions between the US and China, especially after the Tiktok ban bill was passed into law, US-based companies like Tesla are still making progress with the country. With Elon Musk's latest visit to China, it appears that the automaker's FSD feature will finally be rolled out.
Tesla's FSD Availability in China
While the full self-driving (FSD) software has been out for some time, China has yet to try to try it out with Tesla vehicles. Owners have apparently been asking for the driving feature to be rolled out in the country, and that is set to happen soon.
Tesla CEO Elon Musk was seen in Beijing, China, and was expected to discuss the rollout of the FSD software as well as permission to transfer data. Musk has already met with the appropriate officials to make this happen.
China's Premier Li Qiang, after meeting with the Tesla executive, said that the company's development in the country was an example of success in US-China economic and trade cooperation, as reported by Reuters.
This serves as a huge progress for the EV maker, especially since China is the second-largest market globally for the company. Musk himself said that the FSD feature will be available to customers in China "very soon."
In a different post on X, formerly known as Twitter, Elon Musk posted a photo of him meeting Li, which states: "Honored to meet with Premier Li Qiang. We have known each other now for many years, since early Shanghai days."
Wedbush equity analysts say that the meeting was a major moment for Tesla. "While the long term valuation story at Tesla hinges on FSD and autonomous, a key missing piece in that puzzle is Tesla making FSD available in China which now appears on the doorstep."
On top of the successful meeting, a Chinese auto association has also included the Tesla Model Y and 3 in a list of car models it had tested and deemed compliant with the country's security requirements, which is arguably the hardest hurdle companies have to go through in the country.
A Potential Fix for Slowing Demands
The latest development in China for Tesla's FSD feature is good news, especially during this time. Tesla has been struggling with its hold on the EV market as new competitors emerge, to the point that it has already dropped the prices of certain EVs.
With the declining demand, Tesla's Model Y, S, and X have gone down by $2,000, although the costs of the Model 3 and the Cybertruck remain the same, even after the latter was recalled for issues regarding the accelerator pedal.
Elon Musk said that the prices for the vehicles must change frequently to match production with demand, as reported by CBS News. With the expected approval of FSD in China, it will gain an edge over China-based competitors like Li Auto, Nio, and BYD.
The company that once dominated the EV market is slowly losing its hold. In 2020 and the previous years, Tesla accounted for 80% of EV sales in the US, but that has since fallen to 55% by 2024 as more automakers release their own EV models.
