Quick Takeaways
- Tesla FSD approval China is expected next month as regulatory momentum builds.
- Tesla plans a global shift to a subscription-only FSD model amid slowing deliveries.
Tesla CEO Elon Musk expects Tesla FSD approval China to be secured as early as next month, reinforcing the timeline he previously outlined late last year. The development could mark a major milestone for Tesla’s advanced driver assistance ambitions in one of the world’s most tightly regulated automotive markets.
Speaking during his first appearance at the World Economic Forum in Davos, Musk said, “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China.” His remarks indicate parallel regulatory progress across key global regions.
At Tesla’s annual shareholder meeting last November, Musk had already noted that Full Self-Driving had received partial approval in China, with expectations for broader clearance around February or March 2026. That guidance now appears to be aligning with near-term regulatory outcomes.
On February 25, 2025, Tesla began rolling out an advanced driver assistance feature in China that closely resembled the US version of FSD. However, the initial rollout avoided direct references to Full Self-Driving, a move widely interpreted as a cautious step toward formal market entry.
The system has since undergone multiple name changes, reflecting regulatory and positioning adjustments:
For several years, Tesla offered Chinese customers the option to purchase the FSD software package for RMB 64,000 ($9,190). Despite this, the feature remained largely unusable in China, leading even Tesla sales representatives to discourage buyers from selecting the option.
This pricing strategy stood in contrast to domestic competitors. Chinese automakers such as Xpeng, Li Auto, and BYD typically provide their ADAS functionalities at no additional cost, increasing competitive pressure on Tesla in the local market.
Against this backdrop, Musk announced last week that Tesla will discontinue the one-time FSD purchase option globally starting February 14. The company will move entirely to a monthly subscription model, signaling a strategic shift in how it monetizes software-driven features.
The announcement comes as Tesla navigates a global sales slowdown. In 2025, the company delivered 1,636,129 vehicles worldwide, representing an 8.56% year-on-year decline, underscoring the importance of software-led revenue streams like Full Self-Driving.
Speaking during his first appearance at the World Economic Forum in Davos, Musk said, “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China.” His remarks indicate parallel regulatory progress across key global regions.
At Tesla’s annual shareholder meeting last November, Musk had already noted that Full Self-Driving had received partial approval in China, with expectations for broader clearance around February or March 2026. That guidance now appears to be aligning with near-term regulatory outcomes.
On February 25, 2025, Tesla began rolling out an advanced driver assistance feature in China that closely resembled the US version of FSD. However, the initial rollout avoided direct references to Full Self-Driving, a move widely interpreted as a cautious step toward formal market entry.
The system has since undergone multiple name changes, reflecting regulatory and positioning adjustments:
- Full Self-Driving Capability
- FSD Intelligent Assisted Driving
- Intelligent Assisted Driving
For several years, Tesla offered Chinese customers the option to purchase the FSD software package for RMB 64,000 ($9,190). Despite this, the feature remained largely unusable in China, leading even Tesla sales representatives to discourage buyers from selecting the option.
This pricing strategy stood in contrast to domestic competitors. Chinese automakers such as Xpeng, Li Auto, and BYD typically provide their ADAS functionalities at no additional cost, increasing competitive pressure on Tesla in the local market.
Against this backdrop, Musk announced last week that Tesla will discontinue the one-time FSD purchase option globally starting February 14. The company will move entirely to a monthly subscription model, signaling a strategic shift in how it monetizes software-driven features.
The announcement comes as Tesla navigates a global sales slowdown. In 2025, the company delivered 1,636,129 vehicles worldwide, representing an 8.56% year-on-year decline, underscoring the importance of software-led revenue streams like Full Self-Driving.
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