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Tesla FSD improvements in China continues with Baidu’s help

Tesla is working with Baidu to improve FSD in China, as strict data laws prevent Tesla from training its AI locally.

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Credit: Tesla China/Weibo

Baidu is helping Tesla Full Self-Driving (FSD) improve in China.

Engineers from Baidu, a leading AI company in China, are helping Tesla with its FSD Version 13 software.

According to Reuters’ sources, Baidu recently dispatched engineers from its mapping team to Tesla’s Beijing office. The engineers are working on integrating Baidu’s navigation map information with Tesla’s FSD V13 software.

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Tesla’s way of improving FSD V13 in China differs from the methods used in the United States. In the U.S., Tesla trains FSD to improve navigation techniques and learn about roads. In contrast, Tesla cannot train FSD in China due to the country’s data laws.

“Then China, which is a gigantic market, we do have some challenges because they currently don’t allow us to transfer training videos outside of China. And then the US government won’t let us do training in China. So, we’re in a bit of a there. It’s like a quandary,” noted Elon Musk during the last earnings call.

“So, we were solving then is by literally looking at videos of streets in China that are available on the Internet to understand and then feeding that into our training so that publicly available video of street signs and traffic rules in China can be used for training and then also putting it in a very accurate simulator. And so, it will train using SIM for bus lanes in China,” he added.

Tesla has rolled out FSD (Supervised) in Mexico and started the process to release it in parts of Europe. Despite a few regulatory issues, Musk is optimistic that FSD (Unsupervised) will be available in more countries this year.

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“But I think we’ll have unsupervised FSD in almost every market this year, limited simply by regulatory issues, not technical capability. And then unsupervised FSD in the U.S. this year, in many cities but nationwide next year. And hopefully, we have unsupervised FSD in most countries by the end of next year,” he noted during the Q4 and Full Year 2024 earnings call.

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Tesla pushes Full Self-Driving outright purchasing option back in one market

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

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Credit: Tesla

Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.

The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.

The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.

Tesla hits major milestone with Full Self-Driving subscriptions

However, Tesla just launched it just last year in Australia.

Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.

The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.

In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.

The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.

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Tesla ramps up Sweden price war with cheaper Model Y offer

The incentive effectively acts as a manufacturer-funded EV bonus and makes the entry-level Model Y more affordable.

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Tesla has introduced a new 40,000 SEK incentive in Sweden, lowering the price of its most affordable Model Y to a record low. The incentive effectively acts as a manufacturer-funded EV bonus and makes the entry-level Model Y more affordable.

As per a report from Swedish auto outlet Allt om Elbil, Tesla Sweden is offering a 40,000 SEK electric car bonus on the entry-level Tesla Model Y Rear-Wheel Drive variant. The incentive lowers the purchase price of the base all-electric crossover to 459,900–459,990 SEK, depending on listing.

The bonus applies to orders and deliveries completed by March 31, 2026. Tesla Sweden is also offering zero-interest financing as part of the campaign.

Last fall, Tesla launched a new base version of the Model Y starting at 499,990 SEK. The variant features a refreshed design and simplified equipment compared to the Premium and Performance variants. The new 40,000 SEK incentive now pushes the entry model well below the 460,000 SEK mark.

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So far this year, the Model Y remains the most registered electric vehicle in Sweden and the third most registered new car overall. However, most registrations have been for higher Premium-spec versions. The new incentive could then be Tesla’s way to push sales of its most affordable Model Y variant in the country. 

Tesla is also promoting private leasing options for the entry-level Model Y at 4,995 SEK per month. Swedish automotive observers have noted that leasing may remain the more cost-effective option compared to purchasing outright, even after the new discount.

The base Model Y Rear-Wheel Drive offers a WLTP range of 534 kilometers, a top speed of 201 km/h, and a 0–100 km/h time of 7.2 seconds. Tesla lists energy consumption at 13.1 kWh per 100 kilometers, making it the most efficient version of the vehicle in the lineup and potentially lowering overall ownership costs. 

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Tesla China hires Autopilot Test Engineer amid continued FSD rollout preparations

The role is based in Lingang, the district that houses Gigafactory Shanghai.

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Credit: Grok Imagine

Tesla is hiring an Autopilot Test Engineer in Shanghai, a move that signals continued groundwork for the validation of Full Self-Driving (FSD) in China. The role is based in Lingang, the district that houses Gigafactory Shanghai and has become a key testing zone for advanced autonomous features.

As observed by Tesla watchers, local authorities in Shanghai’s Nanhui New City within Lingang have previously authorized a fleet of Teslas to run advanced driving tests on public roads. This marked one of the first instances where foreign automakers were permitted to test autonomous driving systems under real traffic conditions in China. 

Tesla’s hiring efforts come amid ongoing groundwork for a full FSD rollout in China. Earlier reporting noted that Tesla China has been actively preparing the regulatory and infrastructure foundation needed for full FSD deployment, even though the company has not yet announced a firm launch date for the feature in the market.

As per recent comments from Tesla China Vice President Grace Tao, the electric vehicle maker has been busy setting up the necessary facilities to support FSD’s full rollout in the country. In a comment to local media, Tao stated that FSD should demonstrate a level of performance that could surpass human drivers once it is fully rolled out. 

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“We have set up a local training center in China specifically to handle this adaptation,” Tao said. “Once officially released, it will demonstrate a level of performance that is no less than, and may even surpass, that of local drivers.”

Tesla CEO Elon Musk has been quite bullish about a potential FSD rollout in China. During the 2025 Annual Shareholder Meeting, Musk emphasized that FSD had only received “partial approval” in China, though full authorization could potentially arrive around February or March 2026. This timeline was reiterated by the CEO during his appearance at the World Economic Forum in Davos.

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