Tesla’s FSD Launch in China Faces Challenges Amidst Driver Fines

Tesla is now launching its Full Self-Driving (FSD) software in China, which is an important achievement for the electric car company in the world’s largest automobile market. With this software update, customers who have purchased the FSD package will be able to access driver-assist features while driving on city streets.
However, initial videos shared by Tesla owners in China show that the software struggles to navigate many local roads effectively. This is mainly due to limitations in its neural network training. Tesla’s FSD has had difficulty adapting to the specific traffic rules in China, which has resulted in fines for some users.
What’s in the Tesla FSD Update for China?
The latest update for Tesla’s FSD includes features that are similar to those found in the U.S. version. This means that Teslas can navigate urban environments more independently. The system can help vehicles get through intersections, recognize traffic signals, change lanes, and adjust speed when necessary. However, despite its name, Tesla’s FSD technology still needs the driver to pay attention and be ready to intervene at any moment.
STR/Getty Images
Customers who paid around 64,000 yuan (about $8,800) for the FSD package are the first ones to receive this update. Tesla employees in China have already been testing the software as part of a pilot program, but they needed to sign non-disclosure agreements to keep the testing results confidential.
Challenges Faced by Early FSD Users
Since the rollout began, many Tesla drivers in China have been sharing their experiences with the FSD feature via livestreams. Unfortunately, many users are finding that the system doesn’t comply well with Chinese traffic laws. According to reports, some drivers have received multiple fines during a single ride for violations like improper lane usage and making illegal turns.
Xiaolu Chu/Getty Images
One driver even reported getting seven tickets during a single trip using the FSD feature. Many users have commented on how the system may misread traffic signals, drive in restricted lanes, or incorrectly navigate through complicated intersections. There have also been incidents where the software couldn’t identify objects correctly, with one case showing that it mistook red balloons for stop lights.
Regulatory Issues and Data Safety Concerns
Tesla has encountered several regulatory challenges as it tries to roll out its FSD in China. CEO Elon Musk has been in discussions with Chinese officials about getting the necessary approvals since last April. A turning point arrived when Tesla secured a mapping and navigation partnership with Baidu, a major Chinese tech company, which addressed some concerns related to data security and privacy.
Tesla
However, numerous challenges persist. Musk has previously stated that both Chinese and U.S. regulations complicate Tesla’s ability to adjust the FSD system to local driving conditions. To overcome this, Tesla engineers have been analyzing publicly available videos of Chinese roads to improve the system’s capabilities.
So far, China’s Ministry of Industry and Information Technology, which oversees driver-assist technologies, has not made any comments about the software update. The complete rollout will likely depend on approvals from various regulatory authorities.
Tesla and Market Competition in China
The launch of Tesla’s FSD in China comes at a time when local car manufacturers are also enhancing their own advanced driver-assistance systems. For example, BYD, a major competitor in the Chinese electric vehicle market, has launched a system called God’s Eye at a starting price of just 69,800 yuan (around $9,582). This situation puts pressure on Tesla to prove that its higher-priced FSD package provides better value.
Customer Adoption of the FSD Feature
Even though Tesla strongly promotes its FSD software, it hasn’t shared how many customers in China have chosen to purchase this feature. Many potential buyers have been waiting for regulatory approvals, so adoption has been slow. As the software starts to roll out, Tesla is eager to increase its market presence in this highly competitive environment.
While the introduction of the FSD software in China signifies a considerable move forward for Tesla, the company still faces uncertainties with regulations and tough competition. Whether or not the technology can achieve widespread use in the country remains an open question.