Tesla Allowed To Test Full Self-Driving Software On 10 Vehicles In China - Shanghai Grants Approval

Shanghai has reportedly granted permission for 10 Tesla, Inc. (NASDAQ:TSLA) vehicles to conduct tests of the company’s cutting-edge autonomous driving software, setting the stage for its introduction in China.

If Tesla’s Full Self-Driving (FSD) software is effectively launched, it could enhance its competitiveness against local players in China, Reuters reported.

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The report, citing the local government-backed Shanghai Observer, stated that Nanhui New City, the financial hub in Shanghai, will bolster and complement the ecosystem surrounding Tesla’s energy storage, aiming to increase the industry’s concentration.

This might transform the world’s largest auto market into a battleground for more affordable driver assistance features, escalating price competition.

In April, Tesla’s CEO Elon Musk visited Beijing, presumably to discuss the FSD rollout. Reuters reported in May that Tesla is gearing up to register FSD with Chinese authorities ahead of its planned launch this year.

Additionally, Chinese state media revealed in the same month that Tesla had commenced construction on a factory in Shanghai to manufacture its Megapack energy storage batteries, lauding the company’s investment commitment to China, Reuters added.

Also Read: China Greenlights Another Big Tesla Factory, This Time For Megapack Project

Musk said during the company’s first-quarter earnings call in April that Tesla intends to deploy its FSD in all markets where it can get regulatory approval, including China.

Tesla’s diverse application demonstrates the significant boost that cutting-edge products like smart new energy vehicles (NEVs) provide to other related industries, CnEV Post reported.

The report, however, did not provide further specifics regarding FSD or the timeline for when the 10 Tesla vehicles will commence pilot use of FSD.

Price Action: TSLA shares are trading lower by 1.90% to $179.00 at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.