Picture your Tesla seamlessly navigating the busy streets of Beijing or winding through the picturesque landscapes of Europe, all on its own. Sound like science fiction? Not for long. Tesla has just announced a significant step in making this a reality, though some challenges loom large.
Tesla has revealed plans to introduce Full Self-Driving (FSD) technology in China and Europe by the first quarter of 2025, pending regulatory approval. Initially expected in 2024, this rollout represents a slight delay, but it’s making waves in the market. Following this news, Tesla shares surged by 2.55%, reaching $225.03 in pre-market trade.
The announcement, made by Tesla‘s artificial intelligence division via social media, outlines a strategic roadmap for these autonomous driving initiatives. CEO Elon Musk emphasized in July that the company aims to secure the necessary regulatory approvals by the end of this year. “I think there’s a good chance we’ll get regulatory approval in other markets, including Europe and China, by the end of this year,” Musk stated.
September 2024: Introduction of FSD v12.2, promising a threefold improvement in mileage between necessary interventions.
October 2024: The release of FSD v13, which aims to enhance mileage sixfold and introduce new capabilities such as unparking, parking, and reversing with FSD.
By early 2025, Tesla targets the rollout of FSD in China and Europe, provided regulatory approvals are in place.
As promising as these prospects sound, Tesla faces significant regulatory obstacles, particularly in China. In a landscape where electric scooters frequently share motorized lanes, adapting FSD technology will be a formidable task.
One of the headaches Tesla’s FSD will have to face once it enters the country will be the vehicle gaming non-motorized vehicles, including electric scooters.
Li Liyun, Xpeng’s head of autonomous driving
In addition to the current one-time purchase option, Tesla plans to introduce FSD as a monthly subscription service. This move is seen as a potential new revenue stream for the company. Analysts at Piper Sandler stress the importance of monitoring potential performance gaps between the FSD systems on Tesla‘s 3rd-generation and the latest 4th-generation hardware. They suggest that if Tesla successfully solves FSD, investor concerns about these hardware differences may diminish.
To further contextualize Tesla‘s global FSD rollout plans, here’s a breakdown of regional specifics:
| Region | Launch Date | Current Availability | Additional Features | Challenges | Price |
|---|---|---|---|---|---|
| Europe | Q1 2025 (pending regulatory approval) | Limited availability (Enhanced Autopilot and FSD) | Actual Smart Summon, Cybertruck Autopark, Eye-tracking with sunglasses | Regulatory clearance | €8,300 (FSD), half for EAP |
| China | Q1 2025 (pending regulatory approval) | Basic Autopilot (BAP) available | Same as Europe | Electric scooters sharing motorized lanes | RMB 64,000 (FSD), half for EAP |
| US and Canada | Current availability | Beta features including Enhanced Autopilot | None specified | Regulatory scrutiny | Not specified |
| Global | September 2024 | Various autonomous driving capabilities | v12.2, v13 updates, improved mileage | Regulatory hurdles | Not specified |
Tesla‘s ambitious plans for FSD are full of promise. The upcoming rollout, with its innovative subscription model and strategic roadmap, could redefine autonomous driving globally. However, regulatory approval remains the key to unlocking this future. Stay tuned as we monitor these developments and analyze their impact on Tesla‘s market position and broader industry implications.
