Musk expects Tesla’s Full Self-Driving software to win full China approval in early 2026

(Reuters) –Tesla CEO Elon Musk said he expects the automaker’s Full Self-Driving software, a driver ​assistance system, will be fully approved in China early ‌next year.

“We have partial approval in China, and hopefully we’ll have a full ‌approval in China around February or March or so,” Musk told the company’s annual general meeting on Thursday.

China’s industry ministry did not immediately respond to a Reuters request for comment.

China is a major market for ⁠Tesla, but its ‌share has slumped to 8% as of last quarter compared with a peak of 15.4% in the ‍first quarter of 2023, as local brands win over customers with similar driving assistance features, often at no extra cost.

The Tesla system, known as ​FSD for short, has been partially approved in China since ‌February. Before that Tesla owners could use a less advanced and cheaper autopilot option.

However for years, some Chinese Tesla buyers opted to pay 64,000 yuan ($9,000) for FSD on the expectation that a full roll-out would not take long, making its failure to ⁠gain approval a major source of friction ​between owners and the automaker.

With partial approval,​ FSD in China falls short of its capabilities in the United States. It is not permitted to change gears,‍ meaning the ⁠vehicle can’t complete a trip from one parking space to another completely on its own in China. The system has also ⁠had difficulties in identifying local traffic signs on Chinese roads.

($1 = 7.1230 Chinese ‌yuan)

(Reporting by Qiaoyi Li, Zhang Yan and Brenda ‌Goh; Editing by Edwina Gibbs)