Tesla has finally rolled out an update to its Autopilot software in China, introducing city navigation features. However, the much-anticipated upgrade has left many Chinese Tesla owners underwhelmed.
According to Tesla’s announcement, the latest features include automatic lane changes based on speed and route, traffic light detection at intersections, and an in-car camera to monitor driver attention. While these additions align with Tesla’s FSD suite, insiders reveal that the software lacks the sophistication of its U.S. version due to insufficient training data on China’s complex road systems and traffic regulations.
Musk has long advocated for bringing full Autopilot and FSD to China, but the process has been riddled with roadblocks. Both U.S. and Chinese government restrictions on technology transfers have delayed Tesla’s initial target from the end of 2024 to an unspecified date this year.
For Tesla owners in China, the latest update falls short of expectations. Many took to social media to express their dissatisfaction, pointing out that Chinese automakers already provide similar or even superior driver-assistance features at lower prices—or for free.
Lu Panpan, a Model 3 owner from Zhejiang province, voiced his disappointment. After paying 56,000 yuan ($7,720) for FSD when purchasing his vehicle in 2019, he remains frustrated by the lack of significant feature upgrades. “We can tell Tesla has no choice but to deliver a knowingly restricted system,” Lu remarked. “It is hard for Tesla to catch up with the smart-driving capabilities in Chinese cars, which even makes less sense given its high pricing.”
Tesla’s struggles to fully implement FSD in China have put it at a disadvantage against domestic competitors like Huawei, Xiaomi, and BYD. These companies have rolled out electric vehicles equipped with advanced smart-driving features capable of navigating China’s dense urban traffic.
Tesla continues to charge nearly $9,000 for access to a limited version of FSD on vehicles starting at $32,000. In contrast, Xiaomi’s SU7 electric sedan—priced from $29,700—has been outselling Tesla’s Model 3 on a monthly basis and includes a city navigation system at no extra cost. Similarly, BYD recently announced that it would offer advanced autonomous driving features for free on most of its models, even on budget-friendly cars priced as low as $9,555.
Tesla’s latest Autopilot update is comparable to BYD’s mid-tier “God’s Eye” system, which utilizes lidar and advanced computing to generate 3D images for obstacle navigation. However, BYD’s premium brands already offer more advanced versions of the system.
Musk has stated that Tesla is seeking regulatory approval from Beijing to fully implement FSD in China. However, under Chinese law, both Autopilot and FSD are categorized as level-two autonomous driving technologies, meaning they require human supervision and do not need regulatory approval. Only level-three and above self-driving features demand government authorization.
A major sticking point for Tesla is data collection. Musk has previously indicated that Tesla needs to transfer driving data from China to train its AI systems abroad. However, China’s strict data laws impose heavy restrictions on exporting locally gathered information. To work around this, Tesla has been developing plans for a dedicated data center in China to train its self-driving algorithms.
In the meantime, Tesla has resorted to using publicly available online footage of Chinese streets to improve its AI, as direct data training in China remains prohibited under U.S. regulations.
Despite spending years promoting FSD, Tesla remains at a disadvantage in China’s competitive EV market. With local automakers rapidly advancing their smart-driving technology, Tesla’s premium pricing and limited capabilities may continue to erode its appeal among Chinese consumers. Whether Tesla can navigate regulatory challenges and technological limitations to deliver a truly autonomous experience in China remains to be seen.
