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Tesla Pauses FSD Trial in China to Seek Regulatory Approval
TSLATesla(TSLA) ZACKS·2025-03-25 18:35

Core Insights - Tesla, Inc. is preparing to launch its smart driving assistance feature in China pending regulatory approval, following a temporary pause in its Full Self-Driving (FSD) free trial [1][3] Regulatory Compliance - Tesla is adhering to new regulations in China that require approval for over-the-air software updates related to autonomous driving, which were introduced in late February [2] - The company is finalizing approval for its intelligent assisted driving software compatible with its 3.0 and 4.0 hardware versions [2] Free Trial and Technology - The free FSD trial in China is scheduled from March 17 to April 16, designed to handle complex traffic scenarios using generative AI [3] - Tesla aims for a full rollout of FSD this year and has partnered with Baidu to enhance system performance [4] Challenges in China - Tesla faces significant challenges in China due to strict data laws that prevent the transfer of training data outside the country, complicating AI training efforts [5] - The U.S. government restrictions further hinder Tesla's ability to conduct training within China, creating a difficult operational environment [5]