Musk expects Tesla's FSD to win full China approval in 2026

Tesla (TSLA.O) CEO Elon Musk said he expects the automakers 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 well have a full approval in China around February or March or so, Musk told the companys annual general meeting on Thursday.

Chinas 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 cant 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.