Electric vehicle (EV) giant Tesla (TSLA) has finally rolled out its Full Self-Driving (FSD) technology in China after waiting for years to secure approval. The company’s announcement of the FSD launch follows CEO Elon Musk‘s recent visit to Beijing as part of a U.S. delegation of executives that joined President Donald Trump for his summit with Chinese leader Xi Jinping. The launch comes at a time when competition in China’s EV market is intense.
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While the launch of Tesla’s FSD tech in China is a favorable development, the rising competition in the world’s largest EV market could impact demand.
Tesla Launches FSD in China
In a post on X, which is owned by Musk, Tesla listed China as one of the ten countries where its FSD (supervised) technology is now available. Musk has been touting plans to launch the FSD system in China since 2024, after first unveiling it in the U.S. in 2020.
While Tesla awaited China’s regulatory approval for years, domestic rivals Xiaomi (XIACF) and XPeng (XPEV) expanded their own self-driving tech. Moreover, robotaxi companies such as Pony.ai and Baidu’s (BIDU) Apollo Go have also advanced their autonomous driving technologies.
The Chinese EV market is highly competitive in terms of innovation and pricing. According to monthly wholesale data from the China Passenger Car Association, BYD sold the highest number of EVs in China in April, followed by Geely and Chery. Tesla ranked fourth in China last month.
Is TSLA Stock a Buy, Sell, or Hold?
Wall Street is divided on Tesla stock. While Tesla bulls are confident about the company’s prospects in FSD, robotaxis, and other AI-related projects, several analysts remain concerned about the weakness in the company’s EV business amid rising competition and macro pressures.
Overall, the Hold consensus rating on Tesla stock is based on 12 Buys, 12 Holds, and five Sells. The average TSLA stock price target of $403.86 indicates 4% downside risk. TSLA stock has declined 7% so far this year.
