Elon Musk expects Tesla’s Full Self-Driving software to gain full regulatory approval in China by early 2026

Tesla eyes full FSD approval

Tesla CEO Elon Musk stated that the company anticipates receiving full approval for Full Self-Driving (FSD) in China by February or March 2026. This would let Tesla unlock a much wider set of FSD features in China, bringing the system far closer to what drivers currently experience in the United States.

FSD has been partially approved since February 2025, offering a feature locally branded as “Autopilot automatic assisted driving on urban roads,” according to reports. Previously, Chinese Tesla owners had only access to a basic autopilot system.

Partial approval limits capabilities

Currently, FSD in China cannot change gears, so a car can’t complete a full trip on its own. It also struggles with recognizing local traffic signs, limiting its autonomy.

The partial rollout means some Tesla buyers have been paying 64,000 yuan ($9,000) for FSD, expecting faster full approval, according to Reuters. Delays have created tension between Tesla and its Chinese customers.

China is a crucial market

China is one of Tesla’s largest markets, though its share has dropped to 8% from a peak of 15.4% in Q1 2023 (Reuters). Local EV brands are attracting customers by offering similar features at no extra cost.

Tesla’s success in China is critical for global sales growth, making FSD approval a high priority. Musk emphasized that full approval could be a breakthrough in the region.

Real-world testing shows promise

Feedback from Chinese drivers suggests the FSD system performs well on city roads. One user described it as “well-calibrated and human-like,” praising how it handles speed and pedestrians.

A Tesla Model 3 even completed a 4,000-kilometer trip to Mount Everest base camp using the autopilot feature. The journey was livestreamed on Chinese social media and gained significant attention.

FSD vs basic autopilot

The basic autopilot only offers lane-keeping and adaptive cruise control. FSD adds features like automatic navigation in urban areas and semi-autonomous driving, according to Teslarati.

The gap between FSD and autopilot in China is noticeable, creating frustration for buyers who paid extra. Full approval would close this gap and match U.S. capabilities.

Musk’s estimated timeline

Elon Musk shared a concrete date for potential full approval at Tesla’s annual shareholder meeting. He stated that it could happen around February or March 2026, provided regulatory hurdles are cleared.

This timeline gives Tesla owners hope after years of partial access. The announcement also coincided with the approval of Musk’s 2025 performance award by shareholders.

Tesla’s FSD rollout in China

The rollout began under update 2024.45.32.12, introducing autopilot on urban roads, according to Teslarati. Although it isn’t officially called FSD, the system mirrors Tesla’s city-driving capabilities, offering semi-autonomous navigation on complex streets.

Early feedback from drivers indicates the system can handle narrow streets and adjust speed smoothly on major roads. Users reported minimal safety interventions during testing, highlighting Tesla’s careful approach to introducing advanced driving features in China.

Competition heats up

Local Chinese EV brands are gaining traction by offering similar driving assistance tools, often at no extra cost. This has contributed to Tesla’s decline in market share, which fell to 8% in the last quarter, according to Reuters.

To stay competitive, Tesla will need full FSD approval to match the features of local brands. Elon Musk has emphasized that gaining full regulatory clearance is crucial to regaining lost ground and attracting more Chinese buyers.

Owner frustrations over delays

Many Chinese Tesla buyers have been waiting years for full FSD approval. Paying a premium for a partially approved system, 64,000 yuan ($9,000), has caused growing dissatisfaction, according to NDTV.

Tesla now faces pressure to meet expectations and deliver on promised capabilities. Full approval could reduce tension, restore trust, and allow customers to finally use the system as originally advertised without limitations.

Safety and user experience

Chinese drivers report that FSD is “almost too polite” around pedestrians and scooters, according to Teslarati. The system slows properly in crowded streets and adjusts speed smoothly on major roads.

Despite only partial approval, real-world tests have shown that safety remains strong. Musk aims to enhance both safety and convenience, ensuring that drivers can rely on the system even in complex urban traffic environments.

Regulatory hurdles

China’s industry ministry has not yet publicly commented on the full FSD approval timeline. Tesla must carefully navigate local regulations before the system can be fully authorized.

Partial approval shows regulators are cautious, ensuring safety and compliance. Once full authorization is granted, Tesla will be able to unlock the full capabilities of FSD in China, bringing the system closer to the U.S. version.

Tesla stockholder support

At Tesla’s annual meeting, shareholders approved Musk’s 2025 performance award, signaling confidence in the company’s strategic direction. This vote coincides with ongoing progress on FSD in China.

The approval highlights the importance of Tesla’s global expansion, particularly in Asia. Full FSD approval will strengthen Tesla’s market position and enable the company to compete more effectively against local EV brands.

Bank of America recently raised Tesla’s price target without changing its rating. Could this signal growing confidence in Tesla’s future?

Autopilot’s real-world trips

The FSD-like autopilot allowed a livestreamed 4,000-kilometer journey across China, showing strong performance on both urban and highway roads. Drivers praised its handling and safety.

These real-world tests illustrate the system’s potential for future full FSD operations. If Musk’s projected approval comes through, these capabilities could be extended to all users in China, giving Tesla a significant edge in the autonomous driving market.

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This slideshow was made with AI assistance and human editing.