Tesla unveils FSD Supervised in China despite 15% sales slump
Tesla has enabled its Full Self-Driving Supervised software in China, its second-largest market, following regulatory demands for local data storage and product renaming. Retail sales in China fell 15% through April, though increased exports from its Shanghai plant have helped mitigate the downturn.
1. FSD Supervised Launch in China
Tesla has released its Full Self-Driving Supervised software to Chinese customers after completing local regulatory requirements. The rollout marks the first time Chinese drivers can access Tesla’s most advanced driver-assistance suite outside the U.S.
2. Regulatory Compliance and Product Changes
To satisfy Chinese regulators, Tesla implemented local data storage protocols and renamed its FSD feature to meet cybersecurity and consumer protection standards. These adjustments were key to securing approval for the Shanghai plant’s software distribution.
3. Sales Trends and Export Offsets
Retail deliveries in China declined 15% through April, reflecting intensifying competition and cautious consumer sentiment. However, higher exports from the Shanghai factory have partly compensated for domestic weakness, supporting overall production volumes.
4. Competitive Landscape and Outlook
Tesla faces growing rivalry from Xiaomi, XPeng, Nio and BYD, all expanding driver-assistance offerings in China. Continued FSD improvements and regulatory alignment will be critical for Tesla to regain market share and sustain long-term growth.