Tesla Activates Full Self-Driving Software in China

In a major development, Tesla (NASDAQ:TSLA) has officially announced the activation of its Full Self-Driving software in China, following the receipt of necessary regulatory approval. This move signals the company's commitment to staying at the forefront of the electric vehicle market in one of its most significant territories.

Regulatory Challenges Ahead

The announcement came through Tesla's customer service profile on Weibo and was a response to mounting speculation regarding the cancellation of the highly anticipated free trial of the Full Self-Driving feature, which was initially expected to run from March 17 to April 16. The suspension of this trial appears to be related to new guidelines enforced by Chinese authorities that require pre-authorization for over-the-air software updates—regulations that were implemented in late February 2025.

Tesla's Competitive Landscape

As Tesla gears up for this rollout, it faces a dual challenge: navigating the intricate regulatory landscape and contending with escalating competition from domestic manufacturers in China’s electric vehicle market—a critical component of the company's global strategy. With local rivals rapidly innovating and expanding, Tesla’s ability to differentiate itself will be vital.

Analysts Show Optimism

Despite a challenging year, with Tesla shares plummeting over 37% to close at $248.70, analysts are turning optimistic. Recently, investment firm Cantor Fitzgerald upgraded its rating for Tesla from Neutral to Overweight after a productive site visit to Tesla's Gigafactory and its advanced AI infrastructure in Austin. The firm expects Tesla’s revenue to soar, predicting it will reach an impressive $140.8 billion by fiscal year 2026, with earnings per share projected at $4.37.

Looking Ahead

As Tesla re-enters the Chinese market with renewed vigor, the expectations are high. Can Tesla leverage its innovative technology and branding to regain momentum in one of the most competitive EV markets in the world? Stay tuned for more updates on this unfolding story!