Elon Musk Anticipates Full Approval for Tesla's Self-Driving Technology in China by Early 2026

Tesla's Full Self-Driving system, commonly referred to as FSD, has been operating under partial approval in China since February this year.

Elon Musk, Tesla's CEO, announced during Thursday's annual general meeting that he anticipates full regulatory approval for the company's Full Self-Driving software in China by early next year.

"Currently we have partial approval in China, and we're hopeful to secure full approval around February or March," Musk stated at the meeting.

When contacted by Reuters for comment, China's industry ministry did not immediately respond.

China represents a crucial market for Tesla, though its market share has declined significantly to 8% in the most recent quarter compared to its peak of 15.4% during the first quarter of 2023. This decrease is largely attributed to local competitors gaining traction by offering similar driver assistance features, often included at no additional cost.

Tesla's FSD technology received partial approval in China in February. Prior to this, Tesla owners in China could only access a more basic and less expensive autopilot option.

For several years, many Chinese Tesla customers have paid 64,000 yuan (approximately $9,000) for the FSD feature, expecting a complete rollout in the near future. The delayed full approval has created significant tension between these owners and Tesla.

With only partial approval currently in place, the Chinese version of FSD has more limited capabilities compared to its American counterpart. The system cannot change gears in China, preventing vehicles from completing fully autonomous journeys between parking spaces. Additionally, the technology has struggled with recognizing local traffic signage on Chinese roadways.