Tesla has temporarily halted the deployment of its Full Self-Driving (FSD) Supervised technology in China, just weeks after its initial launch. This decision aligns with new regulations established by China's Ministry of Industry and Information Technology, which require automakers to provide comprehensive technical documentation before implementing over-the-air (OTA) software updates on vehicles owned by customers.

The FSD feature was introduced in China as a one-month trial to encourage customer adoption, with the intention of converting users into subscribers through an OTA upgrade. However, the newly implemented regulations have disrupted this strategy. Grace Tao, Vice President of Tesla China, addressed the matter on Weibo, assuring that the update will be made available once all compliance obligations are met.

More brands facing similar challenges

Tesla is not the only brand affected. Domestic electric vehicle manufacturer Xpeng has also had to postpone an over-the-air update for its Mona M03 electric vehicle due to the same regulatory requirements. These new regulations suggest that Chinese authorities are tightening their control over autonomous driving technology, likely to enhance road safety and ensure data transparency.

Mounting concerns over FSD performance

Apart from regulatory holdups, Tesla's FSD technology has faced criticism for its on-road performance. In one documented incident, a Chinese blogger who was testing the FSD-enabled Model Y racked up seven traffic tickets in one evening. The system confused bike lanes with right-turn lanes and performed multiple illegal lane changes.

A side-by-side test between Tesla's FSD and Chinese competitor Li Auto and Aito's driver-assist systems also put additional focus on the weaknesses of Tesla. The test showed Tesla's system noted 34 driving violations and 24 driver interventions. The Li Auto L7 had 14 violations and 9 interventions, and the Aito M9 did slightly better at 14 violations and 12 interventions.

With more scrutiny from the authorities and increased competition, Tesla's road to dominating the autonomous market in China might be tougher than expected.

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