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Tesla FSD in China could add $2.3 billion in annual earnings by 2030: Bank of America

Credit: Tesla Tutorials/YouTube

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Bank of America seems to be seeing the potential of Full Self Driving (FSD) for Tesla’s future in China. In a note, the bank noted that FSD has the potential to boost the electric vehicle maker’s earnings by $2.3 billion by 2030 if the advanced driver-assist suite sees increased adoption among the company’s customers in China. 

Elon Musk’s unannounced trip to China this past weekend suggested that Tesla is laying the foundation for FSD’s release in the country. This was hinted at in Tesla’s partnership with internet giant Baidu for navigation and mapping data. The China Association of Automobile Manufacturers also noted that Tesla has cleared data security and processing requirements in the country. 

FSD (Supervised) has so far only been released to the United States and Canada. Thus, the system’s most advanced features are only available to consumers in the two countries. In the US, FSD can be purchased outright for $8,000 or subscribed as a service for $99 per month. FSD is available for Chinese customers for RMB 64,000 ($8,800), but no subscriptions are available yet.

As noted by Bank of America, if Tesla releases FSD as a $99 service in China, and if a quarter of the estimated 1.6 million Tesla drivers in the country subscribe to FSD, it could provide Tesla with half a billion in annual revenue, as noted in an Insider report. 

“But with a gross margin likely to exceed 70% the earnings benefit could be ~$350 million. This number could increase meaningfully over time and, based on IHS projections for TSLA’s China auto sales, could be $2.3 billion in annual earnings by 2030 under the same assumptions,” Bank of America noted. 

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Bank of America noted that FSD may also generate zero earnings in China if Tesla gets pressured to release the system at no cost to consumers to give itself an edge against rivals in the country. Even in such a scenario, however, Bank of America noted that Tesla will still benefit from China’s FSD users as they would likely accelerate the system’s neural network training. 

“Competition is increasing from domestic manufacturers, and FSD will help TSLA catch up to, and potentially exceed, other EV offerings on the market. Combined with recent price cuts in China (by RMB 14,000, or ~$1,930), this could spur volume growth,” Bank of America noted. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla is improving this critical feature in older vehicles

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Credit: Tesla

Tesla is set to improve a critical feature that has not been present in older vehicles with a new update.

Tesla vehicles feature a comprehensive suite of driver assistance features, some of which aid in driving itself, while others support the vehicle’s surroundings.

One of those features is that of Driver Visualization, and with the rollout of a new update, owners of Intel-based Tesla vehicles are receiving an upgrade that will come with a simple software update.

Tesla plans to use Unreal Engine for driver visualization with crazy upgrade

The update will provide new visualizations while Intel-based vehicles are in reverse, a feature that was not previously available, but will be with Software Update 2025.32.2.

The improvement was spotted by Not a Tesla App via TheBeatYT_evil:

Previously, vehicles Tesla built were equipped with Intel-based processors, but newer cars feature the AMD chip, which is capable of rendering these visualizations as they happen. They were capable of visualizations when driving forward, but not in reverse, which is what this change resolves.

It is a good sign for those with Intel-based vehicles, as Tesla seems to be paying attention to what those cars are not capable of and improving them.

This was an undocumented improvement associated with this particular update, so you will not find any mention of it in the release notes that Tesla distributes with each update.

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Tesla looks to make a big splash with Robotaxi in a new market

Tesla has been transparent that it is prioritizing safety, but it believes it can expand to basically any geographical location within the United States and find success with its Robotaxi suite. CEO Elon Musk said it could be available to half of the U.S. population by the end of the year.

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Credit: Joe Tegtmeyer | X

Tesla is looking to make a big splash with Robotaxi in a new market, as the company was spotted testing validation vehicles in one region where it has not yet launched its ride-hailing service.

After launching Robotaxi in Austin in late June, Tesla followed up with a relatively quick expansion to the Bay Area of California. Both service areas are operating with a geofence that is expansive: In Texas, it is 173 square miles, while in the Bay Area, it is roughly 400 square miles.

Tesla has been transparent that it is prioritizing safety, but it believes it can expand to basically any geographical location within the United States and find success with its Robotaxi suite. CEO Elon Musk said it could be available to half of the U.S. population by the end of the year.

There have been plenty of reports out there that have speculated as to where Tesla would land next to test Robotaxi, and Nevada, Florida, Arizona, and New York have all been in the realm of possibility. These regions will need to approve Tesla for regulatory purposes before Robotaxi can officially operate.

Tesla is still testing and performing validation in several regions, and in Tempe, Arizona, things are moving forward as a Model Y with a LiDAR rig was spotted performing ground truth for the platform:

With the LiDAR unit, many followers of the self-driving and autonomy space might wonder why Tesla uses these apparatuses during validation, especially considering the company’s stance and vision-based approach.

LiDAR is used for “ground truth,” which is basically a solidification or confirmation of what the cameras on the car are seeing. It is a great way to essentially confirm the accuracy of the vision-based suite, and will not be used on Robotaxi units used within the ride-hailing suite.

The Robotaxi platform was made available to the public earlier this month, as Tesla launched its app for iOS users.

Tesla Robotaxi app download rate demolishes Uber, Waymo all-time highs

Downloading the app allows you to join a waitlist, giving you the opportunity to utilize and test the Robotaxi platform in either Austin or the Bay Area.

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Tesla hacker finds lifesaving FSD suggestions in 2025.32.3

The feature could drastically reduce instances of drivers operating their vehicles while distracted or exhausted.

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Credit: Tesla/X

A Tesla hacker has shared references to what could very well be lifesaving FSD suggestions in software update 2025.32.3. 

The feature could drastically reduce instances of drivers operating their vehicles while distracted or exhausted.

New FSD features

As per longtime Tesla hacker @greentheonly, the EV maker’s drowsiness and lane departure suggestions in 2025.32.3 reference FSD. The hacker shared two alerts that specifically suggest the use of FSD, such as “Lane drift detected. Let FSD assist so you can stay focused,” and “Drowsiness detected. Stay focused with FSD.”

The hacker noted that the updated messages in 2025.32.3 are quite interesting because Tesla still advises drivers to be fully alert when using FSD Supervised. Thus, it is quite interesting to see the company advising users to use FSD when they seem unfocused or tired. That being said, FSD is still a supervised solution for now, but the system itself is already very capable, so the company’s updated alerts are not surprising.

Steps to FSD Unsupervised

Such warning messages would definitely make more sense once Tesla actually rolls out FSD Unsupervised. The system seems to be just waiting for regulatory approval for now, considering that it is already being used in vehicles that are coming off the production line at the Fremont Factory and Giga Texas. Tesla is also now using a driverless system for its Robotaxi services in Austin, as well as its autonomous ride-hailing service in the Bay Area.

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For now, Tesla is hard at work preparing for the impending rollout of FSD V14, which Elon Musk has stated will be a notable improvement from the already-impressive performance of FSD V13. As per Musk, Teslas running FSD V14 will feel “sentient.” He also noted that the system “feels alive.”

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