Tesla has announced the launch of its Full Self-Driving software, known as FSD Supervised, in China. The American automaker made the announcement via the social media platform X, indicating that the software is also available in other markets including South Korea, Australia, Canada, the Netherlands, and the United States.
This announcement follows a state visit to China by US President Donald Trump, during which Tesla CEO Elon Musk joined a delegation of American business leaders. Shortly after this trip, Tesla issued urgent job openings in China for autopilot test engineers and data labelers, focusing on validating autonomous vehicle software, suggesting preparations for the system's launch.
FSD Supervised is now available in:- United States- Canada- Mexico- Puerto Rico- China- Australia- New Zealand- South Korea- The Netherlands- Lithuania
— Tesla (@Tesla) May 20, 2026
In China, domestic tech giants and local car manufacturers provide stiff competition for foreign electric vehicles. Brands such as XPeng, Xiaomi, and Huawei already feature advanced urban driving assistance in their vehicles. Local consumers expect new cars—electric or otherwise—to offer features like automatic lane changing and vehicle summons.
Rolling out the software is a significant part of Tesla's long-term business strategy, as the premium driver-assist program generates a steady stream of recurring software subscription revenue. Globally, Tesla shifted from permanent software purchases in February 2026 to a subscription-only model. However, the Chinese portal still lists a one-time purchase price of 64,000 yuan (approximately $9,420), and the company continues to offer Enhanced Autopilot at half the cost of the full system.
The introduction of FSD in China faced delays due to a complex regulatory environment. Tesla established a local data storage facility in Shanghai and partnered with Baidu for navigation mapping data to comply with local laws. Initial testing began in 2023, followed by a small pilot program involving ten vehicles in Shanghai's Nanhui New City in June 2024. Despite missing several deadlines and conflicting reports from local media about regulatory approvals earlier this year, Tesla managed to push through and secure the release.
However, significant technical questions remain regarding the localized autonomous driving system. Chinese regulations prohibit automotive data from leaving the country, and U.S. semiconductor export restrictions complicate Tesla's ability to establish large data processing centers in China. Previously, engineers trained the software using publicly available videos of local roads and traffic signs. The industry keenly observes how Tesla navigates the challenges of data isolation while meeting its computing needs.
A slowdown in sales underscores the urgency behind the FSD launch. Data shows that Tesla's sales dropped year-on-year in 12 of the 16 months between January 2025 and April 2026. In 2025, the company delivered 625,698 electric vehicles in China, marking a 4.78% decrease compared to the previous year. This downward trend worsened in the first four months of this year, with sales declining by 15.05% to 138,754 units. In April alone, sales plummeted to 25,956 vehicles, reflecting a steep 53.74% decrease from March.
While domestic demand has weakened, international shipments from the Shanghai factory remain a strong point for the business. In April, the factory exported 53,522 units, achieving its second-highest monthly export volume ever. From January to April of this year, total exports reached 154,122 vehicles, representing a remarkable 127.07% increase compared to the same period last year and helping offset sluggish retail demand in China.
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