Tesla’s FSD Software Delay in China: An Opportunity for Xpeng to Dominate the Autonomous Vehicle Market

The postponement of Tesla's Full Self-Driving (FSD) software release in China provides an opportunity for Xpeng to move ahead. It is anticipated that the American automobile manufacturer will debut the FSD system in mainland China in the initial quarter of 2025, a delay from the initial projection of late 2024.

Tesla's artificial intelligence (AI) division announced on its X account on Thursday that the American automaker anticipates launching the Full Self-Driving (FSD) system in mainland US during the initial three months of 2025.

The updated schedule presents a challenge for the automaker in China, following CEO Elon Musk's statement in a July earnings discussion that Tesla would gain clearance from Chinese officials to implement the FSD software by the close of 2024.

The AI group at Tesla did not provide an explanation for the postponement.

Vehicles equipped with the FSD software have the ability to self-navigate on freeways and urban roads, however, in numerous situations, human involvement is still necessary.

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