Tesla’s FSD rollout in China hits roadblocks as drivers rack up fines

As Tesla rolls out its most advanced autonomous technology to Chinese roads, early users are facing unexpected penalties.

Mar 10, 2025 - 01:24

Tesla’s FSD rollout in China hits roadblocks as drivers rack up fines

Tesla is currently rolling out its Full Self-Driving (FSD) software in China, marking a significant milestone for the electric vehicle maker in the world’s largest car market. The release of the software update will allow customers who have purchased the FSD package to access driver-assist features on city streets, according to a source familiar with the matter.

But, early-use videos from Tesla owners in China show that the software’s ability to navigate many Chinese roads is limited due to limits in its neural net training. Tesla’s FSD software has found it difficult to adapt to China-specific road rules, racking up fines for Tesla owners using the feature.

What’s included in Tesla’s China FSD update?

The update introduces features similar to those available in the U.S. version of FSD, enabling Teslas to navigate urban environments with greater autonomy. The system will guide vehicles through intersections, recognize traffic signals, execute lane changes, and adjust speeds accordingly. However, despite its branding, Tesla’s FSD technology still requires active driver supervision and frequent human interventions.

Tesla CEO Elon Musk gestures during the Tesla China-made Model 3 Delivery Ceremony in Shanghai.
STR/Getty Images

Customers who have paid 64,000 yuan (approximately $8,800) for the FSD package are the first to receive the update. Tesla employees in China have already been testing the system as part of a pilot program, though they have been required to sign confidentiality agreements.

Early FSD users face fines due to system errors

Since the rollout began, Tesla drivers in China have been livestreaming their experiences with FSD, and many are reporting that the system struggles to adhere to Chinese traffic laws, Electrek reported. Some users have received multiple tickets in a single drive for improper lane use, driving in bike lanes, and making illegal turns. China’s automated traffic enforcement system quickly penalizes such infractions, leaving FSD users frustrated.

An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China.
Xiaolu Chu/Getty Images

One Tesla driver reportedly received seven tickets during a single drive while using FSD. Others noted that the system sometimes misinterprets traffic signals, drives in restricted lanes, or navigates incorrectly by failing to recognize turn-only lanes. Some users have also highlighted issues with object recognition, with one report stating that the system mistakenly identified red balloons as traffic lights.

Regulatory challenges and data privacy concerns

Tesla has faced numerous regulatory hurdles in its effort to bring FSD to China. CEO Elon Musk has been in discussions with Chinese officials since at least April of last year, seeking approval for the system’s deployment. A key breakthrough came when Tesla secured a mapping and navigation agreement with Chinese tech giant Baidu, which helped the company address regulatory concerns surrounding data security and privacy.

However, challenges remain. Musk has previously said that both Chinese and U.S. regulations have complicated Tesla’s ability to train its system on local road conditions. In response, Tesla engineers have been utilizing publicly available video footage of Chinese streets to refine FSD’s capabilities.

China’s Ministry of Industry and Information Technology, the primary regulator overseeing driver-assist technology, has yet to comment on the software update. The timing of a full-scale rollout will likely depend on final approvals from regulatory authorities.

Tesla faces Chinese competition

Tesla’s FSD launch in China comes as domestic automakers ramp up their own advanced driver-assistance offerings. Chinese EV leader BYD recently unveiled a competing system called God’s Eye, which is being integrated as a standard feature on certain models starting at just 69,800 yuan (approximately $9,582). This puts pressure on Tesla to demonstrate the value of its higher-priced FSD package.

Final thoughts

Despite its aggressive marketing of FSD, Tesla has not disclosed how many customers in China have opted for the feature. Adoption has been relatively low as buyers awaited regulatory approval, but as the software update rolls out, Tesla hopes to gain traction in a competitive market.

While the upcoming deployment of FSD in China represents a major step forward, Tesla still faces regulatory uncertainties and stiff competition. Whether the technology can gain widespread adoption in the country remains to be seen.

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