Shanghai has authorized testing of Tesla‘s Full Self-Driving (FSD) software on 10 vehicles, paving the way for a potential wider rollout in China, according to The Shanghai Observer, a local government-backed publication. This move could intensify competition in the world’s largest auto market.
Tesla could gain an edge in China if Full Self Driving is successful
A successful launch of FSD in China would significantly impact the competitive landscape. Tesla would gain an edge over domestic rivals by offering a more advanced driver-assistance system. This could trigger a price war focused on offering increasingly affordable advanced driver-assistance features.
Tesla has already been laying the groundwork for a broader FSD rollout in China. For the past four years, they’ve offered a limited version of FSD as a subscription service. Additionally, in April, CEO Elon Musk visited Beijing, reportedly to discuss the planned launch. News also emerged in May that Tesla was preparing to register FSD with Chinese authorities.
The recent developments extend beyond just FSD. Tesla’s commitment to the Chinese market is further highlighted by their construction of a Megapack energy storage battery factory in Shanghai, reported by Chinese state media in May. Additionally, The Shanghai Observer mentions Tesla signing a contract with Shanghai Lingang, suggesting local commercialization efforts.
(Via)
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