Tesla’s FSD software delay in China gives Xpeng a chance to take the lead

Name: SCMP
Telephone: +852-2680-8888

The US carmaker is expected to roll out the FSD system on the mainland in the first quarter of 2025, compared with previous expectations of end-2024

Reading Time:2 minutes

Why you can trust SCMP

Tesla’s AI team said on Thursday the Full Self-Driving software will now be launched next year. Photo: AFP

Daniel Renin Shanghai

Published: 9:24pm, 5 Sep 2024Updated: 2:39pm, 25 Sep 2024

Tesla’s delay in launching its Full Self-Driving (FSD) driving assistance software in mainland China is a boon for rivals like Xpeng, which could use the extra time to convince local drivers of the superiority of their self-driving technologies, according to an analyst.

The US carmaker is expected to roll out the FSD system on the mainland in the first quarter of 2025, Tesla’s artificial intelligence (AI) team said on its X account on Thursday.

The revised timeline is a setback for the carmaker in China, after CEO Elon Musk said during an earnings call in July that Tesla would receive approval from Chinese authorities to put the FSD software in use at the end of 2024.

Tesla’s AI team did not give a reason for the delay.

Cars fitted with the FSD software are capable of self-navigation on highways and city streets, but human intervention is still required under many circumstances.

12:53

‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market

“The later Tesla launches its FSD [in China], the bigger the benefits its Chinese rivals can reap,” said Chen Jinzhu, the chief executive of Shanghai Mingliang Auto Service, a consultancy. “For instance, Xpeng has been wooing Chinese autonomous-driving fans with similar technology for several years.”