Beijing, March 26 – Tesla has suspended the rollout of its Full Self-Driving (FSD) Supervised technology in China, following fresh regulatory demands introduced by the Ministry of Industry and Information Technology (MIIT). The move comes just weeks after Tesla launched a one-month free trial of FSD in the country, aimed at converting users into long-term subscribers via over-the-air (OTA) updates.
Regulatory Clampdown on OTA Updates
The new MIIT guidelines mandate automakers to submit detailed technical documentation before deploying OTA software updates on vehicles already in customer use. As a result, Tesla’s ambitious plans for mass adoption of its FSD suite in China have hit a roadblock.
Tesla China VP Grace Tao confirmed the suspension in a Weibo post, stating the company is working to meet compliance standards and will resume the update once all regulatory approvals are secured.
Other EV Makers Also Affected
Tesla isn’t alone in facing regulatory pressure. Chinese EV manufacturer Xpeng has also delayed an OTA update for its Mona M03 model due to the same restrictions. The move signals a tightening of regulatory oversight over autonomous driving features in China, with authorities emphasizing data transparency and road safety.
Performance Issues Fuel Criticism
In addition to regulatory challenges, Tesla’s FSD has also faced growing skepticism over its real-world performance in China. A Chinese automotive blogger recently received seven traffic tickets in a single evening while testing a Model Y equipped with FSD. The system reportedly confused bike lanes with turn lanes, performed illegal lane changes, and failed to adhere to local road norms.
Further testing by local media comparing Tesla’s FSD to Li Auto’s L7 and Aito’s M9 driver-assist systems also painted a challenging picture:
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Tesla FSD: 34 driving violations, 24 driver interventions
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Li Auto L7: 14 violations, 9 interventions
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Aito M9: 14 violations, 12 interventions
Tesla’s Autonomous Push in China Faces Uphill Climb
China is one of Tesla’s most important markets, but growing competition from local brands, enhanced government scrutiny, and performance concerns could stall Tesla’s ambitions in the country’s autonomous driving segment.
As the global EV arms race intensifies, Tesla will need to navigate not just technological innovation, but also geo-specific regulatory landscapes to maintain its edge.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.