It seems that Tesla and its ambitious idea of full self-driving (FSD) are stumbling at the moment when the competition is getting intense, particularly on the part of China. Chinese automakers are starting to offer advanced autonomous capabilities at a fraction of the cost, and this is one of the biggest technological and strategic challenges the electric vehicle (EV) giant has ever faced.
Tesla is expected to start testing its much-hyped robotaxi fleet later this month in Austin, Texas. Yet its dominance in self-driving technology is already being challenged even before it has launched. Build Your Dreams (BYD), a Chinese electric vehicle (EV) manufacturer, has introduced an innovative driver-assistance system called the “God’s Eye.” The system, which allows semi-autonomous driving on highways and in urban settings, is named after the three-camera cluster that is prominently located behind the windshield, and BYD is giving it away free on some of its models.
According to some experts, the “God’s Eye” is faster than the Tesla FSD that sells at almost US$9,000 in China. Shenzhen-based investor and former Tesla owner Taylor Ogan said to Reuters, “Tesla’s strategy begins to unravel with God’s Eye,” and continued, “I have driven both, and the BYD system is more competent.”
Tesla has a strategy of using only cameras and artificial intelligence, which has never used costly sensors, such as radar and lidar. However, a Reuters analysis found that the system offered by BYD, which also includes lidar and radar, is about equally expensive to develop.
To make matters worse, Chinese car manufacturers such as Leapmotor and Xpeng are quickly implementing the same autonomous capabilities in cars that cost approximately US$20,000, half the price of Tesla models.
After years of hype and delays, Tesla is starting a limited robotaxi pilot program in Austin with 10 to 20 autonomous vehicles on June 22. In the meantime, its Autopilot and FSD systems are the subject of federal investigation in the U.S. as several crashes and deaths occurred.
With Chinese innovation gaining momentum, the Tesla advantage in self-driving technology might be ultimately falling out of its hands.
 are stumbling at the moment when the competition is getting intense, particularly on the part of China. Chinese automakers are starting to offer advanced autonomous capabilities at a fraction of the cost, and this is one of the biggest technological and strategic challenges […]&media=https://wonderfulengineering.com/wp-content/uploads/2025/06/b53e0a0a655d71f44d59c96eacc54918.webp){kind=link}