China Autos & Shared Mobility_ Tesla FSD set for release in China_

Summary of Key Points from the Conference Call Industry Overview - Industry: China Autos & Shared Mobility - Research Firm: Morgan Stanley Asia Limited Core Insights 1. Tesla's FSD Launch: Tesla is preparing to roll out its Full Self-Driving (FSD) software in China, with customers who previously paid Rmb64k (US$8.8k) eligible for the release [1] 2. Impact on L2+ NOA Adoption: The anticipated launch of Tesla's FSD could accelerate the adoption of L2+ Navigate on Autopilot (NOA) features across China's New Energy Vehicles (NEVs), following BYD's recent mass adoption of Advanced Driver Assistance Systems (ADAS) [1] 3. Competitive Landscape: Tesla's influence is shifting local players towards end-to-end neural networks for their AD solutions, indicating a potential increase in competition within the China smart EV ecosystem [1] 4. Pricing Strategy: It remains to be seen if Tesla will maintain the Rmb64k price for FSD, as many local competitors are offering NOA software for free [1] Regulatory and Operational Challenges 1. Data Ownership and Computing Power: Regulatory hurdles persist for Tesla regarding data training and transfer outside China for the FSD launch. The ownership of training data and access to necessary computing power will be critical amid ongoing geopolitical tensions [2] Additional Information - Analyst Team: The report includes insights from various analysts at Morgan Stanley, including Tim Hsiao, Adam Jonas, Cindy Huang, and others [3] - Investment Banking Relationships: Morgan Stanley has investment banking relationships with several companies in the automotive sector, which may influence their research objectivity [4][14][16] Stock Ratings Overview - The report includes stock ratings for various companies in the China automotive sector, indicating a mix of Overweight (O), Equal-weight (E), and Underweight (U) ratings for companies like BYD, NIO, and Geely [57][59] Conclusion - The anticipated launch of Tesla's FSD in China is expected to have significant implications for the adoption of autonomous driving technologies in the region, while regulatory challenges and competitive dynamics will play a crucial role in shaping the market landscape.