TEAM

Typesetting: Yuni Mashi

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Produced by Qiancheng Digital Intelligence (Effective Marketing Intelligence Agency)

On February 25, Tesla's FSD, beset by numerous delays, finally made its debut for Chinese consumers.

On this day, Tesla officially announced the phased rollout of its FSD (Full-Self Driving) feature to Chinese customers, equipped with software version 2024.45.32.12.

The update to version 2024.45.32.12 comprises three major upgrades: Firstly, the Autopilot automatic assisted driving for urban roads (optimizing the existing NOA automatic assisted navigation driving function): Using Autopilot on controlled access roads (main roads where road users enter and exit via ramp entries and exits) and urban roads will guide the vehicle to exit ramps and intersections based on the navigation route, recognize traffic lights at intersections for straight, left, right turns, U-turns, and other maneuvers. It will also automatically change lanes based on speed and route. When no navigation route is set, it will select the optimal road to travel based on actual road conditions. Secondly, it employs in-cabin cameras to monitor driver attention, with data processed locally within the vehicle. Thirdly, the map package has been updated.

Strictly speaking, the FSD rolled out by Tesla this time falls under intelligent assisted driving and does not possess the "parking spot to parking spot" full-coverage scenario enjoyed by the American FSD. It necessitates the driver to remain focused and monitor vehicle behavior during driving to intervene promptly.

Some bloggers have conducted actual tests and discovered that in more complex scenarios such as bus lanes during rush hour, suddenly appearing pedestrians, and dialect road signs, Tesla's FSD performs less smoothly than domestic intelligent driving systems and may even require manual emergency intervention. Some netizens even joked, "Driving like this, 12 points won't last a day."

In response, on February 26, Tesla CEO Elon Musk candidly replied on social media: Tesla has utilized publicly available videos of Chinese roads and traffic signs on the internet to train FSD in a simulated environment.

In other words, Tesla's FSD has not been "tortured" by China's complex roads. For instance, in Chongqing, known as the "8D city," urban roads are highly variable, featuring steep slopes, curves, tunnels, and three-dimensional traffic intertwining everywhere. Many domestic automakers have traveled to Chongqing to test the intelligent driving capabilities of their vehicles. In essence, at least domestic intelligent driving models have challenged complex domestic road conditions before their launch.

China's road conditions pose the first major hurdle for the introduction of FSD in China. Additionally, price is another significant factor.

Tesla's FSD feature sets a high entry threshold for users, with two conditions: Firstly, paying 64,000 yuan to purchase the FSD suite; secondly, the vehicle must be equipped with HW4.0 hardware, which was only updated in February 2024. This implies that even if older car owners wish to spend 64,000 yuan to purchase it, they cannot utilize it. Notably, this price is three times more expensive than Huawei's ADS, while Xiaopeng's XNGP is directly free for life.

For a while, a public debate has emerged: "Should I spend 64,000 yuan to subscribe to Tesla's FSD" or "Should I spend 70,000 yuan to buy a BYD Seagull with a similar trinocular vision solution?"

On one hand, BYD has proclaimed the slogan of "popularizing intelligent driving for all" and established a "cost-effectiveness label" in the hearts of consumers; on the other hand, Huawei's Automotive BU, positioned as high-end, has set its sights on L3-level autonomous driving to attract high-end users. China's intelligent driving market has formed two distinct camps. How Tesla's FSD can strike a balance between the two is a challenge following its entry into China.

However, it is undeniable that the introduction of FSD to China is not merely a technical output but also propels China's intelligent driving competition to another peak.

Faced with the introduction of FSD to China, Chinese brands have become more confident compared to one or two years ago.

"In the next 2 to 3 years, high-level intelligent driving will become an essential configuration like seat belts and airbags," said Wang Chuanfu, chairman of BYD.

Yu Chengdong, executive director of Huawei, chairman of the Terminal BG, and chairman of the Intelligent Automotive Solutions BU, boldly declared, "Huawei's intelligent driving is superior to 'FSD' even without lidar."

In the short term, domestic intelligent driving systems have an edge in local adaptability and cost-effectiveness; however, industry analysts believe that if Tesla overcomes its algorithm and data bottlenecks, it may emerge victorious later.

For now, FSD does not appear to be a lifesaver for Tesla. From a capital market perspective, Tesla's share price fell by more than 8% on Tuesday, closing at its lowest level since November 7 (the day after the U.S. election), with its market value officially dipping below one trillion dollars. The stock has declined by 25% year-to-date and more than 35% from its all-time high.

The underlying reason behind this is the collective disappointment of Chinese users with FSD, who believe that the system has not delivered on Musk's promised autonomous driving capabilities.

Just prior to the announcement of the introduction of FSD to China, Tesla faced dual challenges in sales and revenue. Data indicates that in the fourth quarter of 2024, Tesla's revenue declined by 8% year-on-year, and its operating profit plummeted by 23%. Tesla explicitly stated that the primary reason for this was the continuous decline in the average selling prices of its main models, such as the Model 3 and Model Y.

In the global market, for the full year 2024, Tesla delivered a total of 1.789 million new vehicles, a year-on-year decrease of 1.1%, marking the first decline in Tesla's new vehicle sales in a decade.

Obviously, the market has left Tesla with little time, and its market performance is compelling it to seek new growth engines. For the Chinese market, the long-awaited FSD by consumers is one such engine, albeit seemingly falling short of Musk's expectations.