Tesla has added new driving assistance features to some of its cars in China, using online videos to improve its software. CEO Elon Musk confirmed the update, which was released on Tuesday. These features help with tasks like staying in lanes and making turns. However, this is not the full version of Tesla’s advanced Full Self-Driving (FSD) system, which is still not available in China due to ongoing development and government approval requirements.
Tesla is facing strong competition in China, the world’s biggest electric vehicle (EV) market. Chinese automaker BYD is making things tougher by offering its self-driving software for free in all its cars. In comparison, Tesla owners in China have to pay around $8,800 to get similar advanced features. This pricing difference puts Tesla at a disadvantage, especially as BYD is also improving its technology by using artificial intelligence (AI) from a local startup called DeepSeek.
Tesla’s sales in China show the challenge. In 2024, the company sold 1.79 million cars worldwide, slightly less than the 1.81 million it sold in 2023. This was Tesla’s first yearly sales decline in more than a decade. Meanwhile, BYD’s free software and more affordable cars have boosted its sales, nearly doubling Tesla’s EV sales in China in January alone. Tesla hopes its latest update will help it compete, but since it only includes partial self-driving features and is expensive, it’s uncertain if it will be enough to beat BYD.
What’s next? Tesla might have to speed up the release of its full FSD system in China or lower its prices to stay in the game. With Musk focusing on AI and self-driving technology, the company has a lot at stake in this important market.
