Tesla on Monday introduced a limited version of its Full Self-Driving (FSD) features in China, enhancing its autopilot software with city navigation capabilities. This update includes automatic lane-changing based on speed and route, traffic light detection at intersections, and driver attention monitoring through an in-car camera.
The limited functionality is attributed to insufficient data training on Chinese roads and traffic regulations, according to Reuters reporting a knowledgeable source. FSD represents a suite of driving-assistance technologies utilizing generative artificial intelligence to manage more complex traffic scenarios, whereas autopilot is designed for more routine driving conditions.
CEO Elon Musk aims to deploy full autopilot and FSD systems in China but has faced challenges related to technological constraints, leading to the postponement of the initial end-2024 target to an earlier timeline.
Tesla Falling Behind
The delays in launching a comprehensive FSD system in China have positioned Tesla behind local competitors such as Huawei, Xiaomi, and BYD. These companies have released numerous electric vehicles equipped with advanced smart-driving software capable of navigating China’s intricate city traffic.
While Tesla charges an additional fee of nearly $9,000 for a limited version of its FSD software on electric vehicles starting at $32,000, competitors offer similar or enhanced features at lower costs. For instance, Xiaomi’s SU7 electric sedan, priced from $29,700, has outsold Tesla’s Model 3 in China on a monthly basis and includes an enhanced smart-driving system with city navigation at no extra charge. Similarly, BYD offers advanced autonomous-driving features on most models for free, with some priced as low as $9,555.
Tesla’s latest autopilot update aligns with BYD’s mid-tier God’s Eye system, which employs advanced computing and lidar technology to create 3D images of a vehicle’s surroundings, assisting in obstacle navigation. This system is available in BYD’s premium Denza brand and high-end models of its Dynasty and Ocean series.
Musk has stated that Tesla is seeking regulatory approval from Beijing to fully deploy FSD in the country. Currently, Chinese regulations categorize both autopilot and FSD as level-two autonomous driving technologies, requiring human supervision and intervention when necessary.
Domestic Development Accelerates with DeepSeek Integration
In parallel, Chinese automakers are rapidly advancing in-car experiences and smart driving capabilities, particularly after the introduction of the DeepSeek language model. In early February, manufacturers including Geely Auto, IM Motors, Leapmotor, and GAC Group announced deep integrations with DeepSeek’s AI model to enhance intelligent driving development.
Leapmotor became the first among new energy vehicle startups to incorporate DeepSeek, following Geely Auto’s initial announcement, making Geely the first automaker to officially collaborate with DeepSeek. These integrations aim to improve multi-turn voice assistant commands, text-to-image generation, and active learning. By utilizing advanced central domain controllers with powerful AI chips and optimized computing power, these collaborations seek to refine cockpit interaction logic, bolster natural language understanding, and accelerate personalized service responses. This initiative ensures a seamless and efficient experience across various applications, including intelligent cockpits and human-machine interactions.
To date, over a dozen automakers and brands, including BYD, Geely Auto, Voyah, Baojun, Dongfeng Motor, IM Motors, Leapmotor, and GAC Group, have announced comprehensive integrations with DeepSeek’s AI model, signaling a significant push in enhancing smart-driving technologies within China’s electric vehicle market.
