Tesla Nears Full Clearance To Deploy FSD-Like System in China

Tesla Inc is confident it will receive the green light from Chinese regulators to roll out its most advanced driver-assistance system (ADAS) in full by early next year, according to CEO Elon Musk.

Speaking at the company’s annual shareholder meeting, Musk said Tesla currently has partial approval to operate the system in China, with full clearance expected around Feb or March 2026.

The technology mirrors Tesla’s Full Self-Driving (FSD) system used in the United States, though it still requires constant driver attention and human oversight. Despite its name, FSD is classified as a Level 2 automation system, meaning it can assist but not replace the driver.

According to The Edge, gaining approval in China is key to Tesla’s efforts to regain momentum in the world’s largest EV market, where domestic automakers such as BYD and Li Auto have eroded its market share. The software is also a crucial step toward Musk’s longer-term goal of achieving fully autonomous vehicles.

Tesla began its China rollout earlier this year after renaming the system to comply with stricter local regulations that prohibit misleading terminology about vehicle capabilities. Full testing, however, has been held back until Beijing grants final approval.

The groundwork for this push was laid in April 2024, when Musk made an unannounced visit to Beijing to meet with top officials including Premier Li Qiang. That trip paved the way for a mapping and navigation partnership with Baidu Inc, as well as partial clearance on data-security and privacy requirements, key issues for foreign tech firms operating in China.

Musk has also turned his attention to Europe, urging Tesla owners there to pressure local regulators to approve the same technology. So far, the European Union has yet to give its nod for widespread public use.

While Musk insists the system enhances road safety, Tesla’s record remains under close regulatory scrutiny. US authorities continue to investigate several incidents involving vehicles allegedly running red lights or breaching traffic laws while using Autopilot or FSD.