Tesla’s FSD Meets Challenges in Adapting to the Chinese Market

On February 25th, Tesla began rolling out the FSD feature to Chinese customers in batches, with the software version labeled as 2024.45.32.12.

The key upgrade in this OTA software update is the “City Road Autopilot Autonomous Driving” function, enhancing the existing NOA automatic navigation feature. Post-update, the system will be capable of recognizing traffic signals, autonomously changing lanes, and identifying intersections.

This release in China differs from the “fully autonomous driving” FSD version in the U.S., focusing on “FSD intelligent assisted driving functions” tailored for specific urban road scenarios.

The update is accessible only to users who have purchased the FSD package for 64,000 RMB and have vehicles equipped with HW4.0 hardware. Eligible models include those produced after February 2024, such as the Model Y/3 and the new Model S/X.

This limitation means that the number of eligible users is less than ten thousand, leaving over 90% of Tesla owners unable to access the new features. Tesla has included disclaimers in the update instructions, noting that functionality may vary based on vehicle configurations and road conditions.

A recent comparison by automotive media “Dongchedi” between Tesla Model Y, Li Auto L7, and AITO M9 highlighted issues with traffic rule misinterpretations and handling complex road scenarios, such as difficulties in distinguishing lanes or hesitating to change lanes in dense traffic.

The performance of Tesla’s FSD in China differs from that in North America due to insufficient localized training data, leading to increased non-compliance and violations, posing challenges for FSD’s adaptation to local conditions.

Despite challenges, internal sources from leading domestic intelligent driving companies praised FSD’s precision and low latency in control, building a high level of user trust. Some users reported excellent FSD performance in simple road conditions, such as smooth turns, accurate traffic light recognition, and proactive pedestrian and motorcycle avoidance. With the gradual expansion of FSD services in the Chinese market, Tesla aims to optimize the system further using real-time videos and simulated training experiences to enhance performance.

The trial of FSD in China has spurred competitors to accelerate their intelligent driving system developments. BYD launched the advanced “God’s Eye” intelligent driving system, covering a wide range of models, while Chery plans to equip entry-level models with intelligent driving systems, signaling broader access to intelligent driving features for consumers. Tesla’s Chinese competitors are striving to match Tesla’s advancements, compressing the cost of intelligent driving functions to one-third of Tesla’s through innovative strategies.

According to Tesla’s 2024 annual report, as of January 2025, the total driving distance of FSD (under regulatory supervision) exceeded 3 billion miles, with safety coefficients significantly surpassing the U.S. average.

SEE ALSO: Tesla FSD Officially Launched in China