Sunita Somvanshi
Tesla has launched a one-month free trial of its Full Self-Driving (FSD) feature in China, running from March 17 to April 16, 2025. This move comes as the electric vehicle maker faces growing competition in the world’s largest auto market.
The free trial allows eligible Tesla owners who haven’t purchased the FSD package to experience the technology after updating to the latest software. Tesla’s FSD package normally costs 64,000 yuan ($8,850) in China, with a discounted upgrade price of 32,000 yuan for vehicles already equipped with Enhanced Autopilot.
Localized Challenges
Tesla is working with Chinese tech giant Baidu to improve FSD’s performance on local roads. According to sources, Baidu has sent engineers to Tesla’s Beijing office to help integrate Baidu’s navigation map information, including lane markings and traffic signals, with Tesla’s FSD Version 13 software.
This collaboration aims to address complaints from Chinese customers who felt the February software update fell short of CEO Elon Musk’s promises. Some drivers reported issues with the system changing to wrong lanes and failing to recognize red lights.
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Data and Regulatory Hurdles
Tesla faces unique challenges in China due to data restrictions. Unlike in the United States, Tesla cannot train its AI with data collected from its roughly 2 million vehicles in China because local laws require data to be stored within the country and approval for transfers abroad. At the same time, U.S. regulations prevent Tesla from training its AI software in China.
Musk described this situation as a “quandary” during an earnings call in January. Without sufficient local data training, FSD V13 has struggled to adapt to Chinese road conditions.
Competitive Landscape
The free trial comes as Tesla battles intense competition from Chinese automakers. Local rivals like BYD and Xpeng offer similar driver assistance features for free, while Tesla charges an additional fee on top of vehicle prices that start around $32,500.
Tesla’s market share in China’s EV market fell for the first time last year, dropping to 10.4% from 11.7% in 2023.
Customer Experience
Tesla has emphasized that despite the advanced capabilities, FSD remains a Level 2 assisted driving system requiring constant driver supervision. The company requires drivers to keep both hands on the steering wheel, stay aware of road conditions, and be ready to take immediate action.
“We are launching this campaign based on goodwill for customers to experience Tesla’s in-house developed advanced assisted driving features for free,” Tesla stated in its announcement.
Frequently Asked Questions
What is included in Tesla’s FSD trial in China?
The free trial includes Tesla’s Full Self-Driving features like city street navigation, traffic signal recognition, and lane changes. However, it remains a Level 2 system requiring driver supervision at all times. The trial is available between March 17 and April 16, 2025, for eligible vehicles after updating to the latest software.
How much does FSD normally cost in China?
Tesla’s Full Self-Driving (FSD) package costs 64,000 yuan (approximately $8,850) in China. Vehicles already equipped with Enhanced Autopilot can be upgraded to FSD for 32,000 yuan.
Why is Tesla working with Baidu on FSD in China?
Tesla is collaborating with Baidu to improve FSD’s performance on Chinese roads. Baidu engineers are helping integrate their navigation map information with Tesla’s system to provide more accurate data on lane markings and traffic signals, since Tesla faces restrictions on collecting and using local driving data to train its AI.
How does Tesla’s FSD in China compare to competitors?
Unlike Tesla, which charges an additional fee for FSD, Chinese competitors like BYD and Xpeng offer similar advanced driver assistance features for free with their vehicles. This pricing difference has contributed to Tesla’s declining market share in China, which fell from 11.7% to 10.4% last year.
What challenges does Tesla face with FSD in China?
Tesla faces both regulatory and technical challenges. China’s data laws prevent Tesla from transferring locally collected driving data abroad for AI training, while U.S. regulations prevent training in China. This has limited Tesla’s ability to adapt FSD to Chinese roads and driving conditions.
Is the FSD system in China the same as in the United States?
While the core technology is similar, the FSD system in China hasn’t received the same level of local data training as in the U.S. This has led to performance issues with the Chinese version, including problems with lane changes and traffic signal recognition that have prompted user complaints.
