Core Viewpoint - Tesla's Full Self-Driving (FSD) system is finally being introduced to the Chinese market after multiple delays, but its impact on sales and market perception remains uncertain due to various challenges and competition from local automakers [1][4][12]. Group 1: FSD Introduction and Market Reaction - Tesla announced the rollout of the Chinese version of the FSD system, focusing on updates for urban Autopilot, cabin cameras, and map packages [1]. - Despite the announcement, Tesla's stock fell over 8% on February 25, indicating market skepticism about the FSD's potential impact [1][12]. - The FSD system has faced repeated delays in its introduction to China, with initial expectations set for 2023, but now pushed to 2025 [4][5]. Group 2: Challenges Faced by FSD in China - The FSD system is considered a "cut-down version" of the original, as it cannot collect and train on local road data due to regulatory restrictions [5][10]. - Challenges include differences in road conditions, data privacy concerns, and the acceptance of a subscription model by Chinese consumers [5][9]. - Local competitors have advanced their own autonomous driving technologies, making it difficult for Tesla to regain its previous market dominance [8][10]. Group 3: Sales and Market Share - In 2023, Tesla delivered 1.7892 million vehicles globally, with 657,000 units sold in China, marking an 8.8% increase year-on-year [12]. - However, Tesla's market share in China has declined to 5.4% in 2024, down 2.4% from the previous year, compared to a peak of 16.6% in 2021 [12][14]. - Tesla's aggressive pricing strategies, including significant price cuts and financing offers, indicate a push to boost sales amid increasing competition [13][14]. Group 4: Consumer Sentiment and Brand Image - Consumer perception of Tesla has been affected by CEO Elon Musk's controversial public image, with 60% of potential buyers indicating it influences their purchasing decisions [16][17]. - The FSD's subscription model may not resonate well with Chinese consumers, who are accustomed to free or bundled autonomous driving features [9][10]. - The overall effectiveness of the FSD system in the Chinese market remains to be seen, with early testers reporting mixed results [6][10].