The Chinese government has reportedly given preliminary approval for it Tesla to use his so-called Complete self-driving (FSD) semi-autonomous driving technology in the country.
The Wall Street Journal According to reports from unknown sources, the government has conditionally approved the launch of the technology following CEO Elon Musk’s recent meeting with Chinese Premier Li Qiang.
Tesla has also reportedly signed a mapping and navigation deal with Chinese tech giant Baidu, meeting requirements to address data security and privacy issues.
The company is reportedly seeking permission to transfer data collected from its cars in China to the US to train its driver assistance features The Wall Street Journal International data transfers would reportedly have to go through strict approval processes.
However, the China Automobile Manufacturers Association has said that the Model 3 and Model Y have passed its tests and meet China’s data security requirements.
This could result in Tesla vehicles being allowed into sensitive Chinese military and government sites, something they are currently banned from doing.
Since Tesla offers FSD not only as a direct purchase but also as a subscription, the government’s approval opens up a potentially large revenue stream for the company in China.
It could also help reverse a decline in sales in that market, as sales of locally built models in China fell four percent year-on-year in the first quarter of this year, while the overall electric vehicle market grew 15 percent.
FSD is a more comprehensive driver assistance feature than Tesla’s Autopilot system and – at least currently in North America – offers the ability to navigate city streets and turn at intersections without driver input.
But it won’t be the only company in China to offer this capability, with rival electric vehicle (EV) brands such as Li Auto, Xiaomi and Xpeng boasting about it.
Tesla warns that despite its name, FSD does not make the vehicle autonomous and requires active monitoring by the driver. It is still considered a Level 2+ autonomous driving system and not a fully (i.e. Level 5) autonomous system as the name suggests.
It also relies on cameras, although Tesla foregoes radar and ultrasonic sensors and does not invest in LiDAR – a technology that is now widespread in Chinese high-tech vehicles.
Tesla recently cut the price of FSD in the US from US$12,000 (A$18,542) to US$8,000 (A$12,361) and halved the cost of its monthly FSD subscription. It now costs US$99 (A$153).
The full suite of FSD technology is currently only available in North America. However, you can add what Tesla calls “Full Self-Driving Capability” to its cars in Australia for $10,100.
Buyers in the US and Canada can take advantage of the full range of features, as the vehicle is capable of controlling steering and braking on city streets and stopping at traffic lights and stop signs.
Australian market vehicles with the FSD Capability option enabled do not have the automatic steering function, but do have traffic light and stop sign recognition, which is not available in the brand’s Autopilot system.
In China, where FSD capability currently costs 64,000 yen (A$13,852), cars are not yet able to recognize and respond to traffic lights and stop signs.
Teslascopewhich tracks Tesla software updates, reported earlier this year that FSD was being tested by Tesla in Australia and over a dozen other countries.
MORE: Everything Tesla