Tesla paused Full Self-Driving trial in China to seek regulatory approval

From Nasdaq: 2025-03-25 13:31:00

Tesla, Inc. is preparing to launch its smart driving assistance feature in China pending regulatory approval. The company paused a free trial of its Full Self-Driving service in compliance with new regulations requiring approval for over-the-air software updates related to autonomous driving. The system, powered by generative AI, aims for a full rollout this year.

Tesla faces challenges in China due to data restrictions, limiting its ability to refine its technology. The company cannot transfer training video footage out of China, while the U.S. government prohibits training within China. Tesla is finalizing approval for its intelligent assisted driving software to enhance its system’s performance in the Chinese market.

Tesla’s Zacks Rank is currently at #3 (Hold). Better-ranked stocks in the auto space include China Yuchai International Limited, Dana Incorporated, and Strattec Security Corporation, each with a Zacks Rank #1 (Strong Buy). These stocks show potential for significant growth in sales and earnings over the coming years. Tesla’s partnership with Chinese tech giant Baidu aims to improve the performance of its Full Self-Driving system and overcome data challenges in China.



Read more at Nasdaq: Tesla Pauses FSD Trial in China to Seek Regulatory Approval