Key Takeaways
1. Tesla is rolling out its Full Self-Driving (FSD) service in China through an over-the-air update, but it faces limitations due to data restrictions.
2. The FSD in China is not as advanced as the U.S. version and is marketed as an enhancement to the existing Navigate on Autopilot feature.
3. Tesla has rebranded the FSD option to “automatic assisted driving kit” and is now priced at $8,000, similar to Level 2 driver-assist systems offered by competitors like BYD for free.
4. Unique challenges in launching FSD in China include data export restrictions from the U.S. and regulations preventing the transfer of training videos outside China.
5. Tesla plans to refine the FSD system by using locally gathered data and real-life driving scenarios once U.S. engineers implement a tailored algorithm for China.
Tesla is rolling out its Full Self-Driving (FSD) service through an over-the-air software update for owners in China who have purchased the feature but couldn’t use it until now.
FSD Limitations in China
However, the FSD functionalities in China do not meet expectations, as Tesla encounters restrictions on the data it can utilize for training its algorithms. Currently, the service is not even close to the FSD version 13 that has been launched in the United States. In China, Tesla promotes it as an enhancement to the Navigate on Autopilot feature, which can handle lane changes, navigate ramps, read traffic signals, and make turns in urban areas. Additionally, the cabin camera is now being utilized to monitor if the driver is paying attention to the road.
New Naming and Pricing Strategy
Tesla has rebranded the $8,000 option from FSD to “automatic assisted driving kit,” as it primarily serves as a Level 2 driver-assist system similar to what BYD provides for free in its vehicles. This month, Tesla reportedly sent a group of U.S. engineers to implement a China-specific algorithm that incorporates raw data from test Teslas operating in the country since last year, along with various driving videos sourced from the Internet.
Challenges Ahead
According to Elon Musk, the launch of FSD in China has been encountering unique challenges. The U.S. government does not permit the export of raw driving data, while Chinese regulations prevent the transfer of training videos outside the country. Musk stated, “We are in a bit of a bind there. So like, bit of a quandary.” To overcome these obstacles, Tesla is analyzing publicly available videos of Chinese streets to enhance their training data and using a simulator for specific scenarios, particularly focusing on the complex bus lanes in China. These lanes have strict regulations, and entering them at the wrong time can lead to instant penalties.
Future Prospects
Tesla seems to be gaining confidence in launching at least basic FSD features in China. Once the U.S. engineers deploy the algorithm, the local team will take over, gathering specific data and real-life situations from local roads to refine the system progressively.
It is still uncertain how many Tesla owners in China will opt to pay the full price for a partially functional FSD, especially when local EV manufacturers like BYD are offering better autonomous features at no extra cost.
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