Hey everybody, welcome back to the Elon Musk podcast. This. Is a show where we discuss. The Critical. Crossroads The Shape SpaceX, Tesla X The Boring Company. And Neuralink. I'm your host, Will. Walden Tesla is preparing to register its Full Self Driving software with Chinese authorities aiming to launch the advanced feature this year, And it's according to three sources familiar with this matter now.
The move is part of Tesla's broadest strategy to expand its presence in China, its second largest market. And additionally, the company is considering offering the FSD software as a monthly subscription to his Chinese customers. Now securing registration with China's Ministry of Industry and Information Technology, the MIIT will allow Tesla to conduct internal testing of the FSD system using its employees on public roads in China.
This testing phase is a precursor to making the software available to Chinese users as an upgrade in the coming months. And currently, Tesla offers 2 less advanced versions of its Autopilot driver assist system in China. The FSD system, which Tesla currently sells for a one time fee of ¥64,000 that's approximately $8800 US, might also be available as a monthly subscription fee, likely around the $100 mark. About $98 apparently.
Now the introduction of a subscription model could attract more customers by lowering the upfront cost area. Now, Tesla's expansion plans include the potential licensing of its FSD software to other automakers in China, and the strategy could diversify Tesla's revenue streams amiss a competitive and discount driven market. Notably, Tesla sales in China have declined by 7.6% in the first four months of this year due to increased competition
from local EV manufacturers. Yel Zhang, managing director of Shanghai based consultancy Automotive Foresight, said that Tesla's introduction of FSD in China would compel other EV startups to expedite the research and development
efforts. The competitive pressure shows the significance of Tesla's technology and the competition between all these automakers and the roll out of FSD in China aligns with a strategic shift by Tesla CEO Elon Musk to power the development of its self driving system using data collected and processed within China. Now this approach not only leverages local data but also adheres to regulatory requirements regarding data localization.
Now, Tesla aims to introduce version 12 of the FSD software in China, and Musk has expressed confidence that this version paves the way for fully autonomous driving systems. The software's evolution reflects Tesla's ongoing commitment to refining its self driving tech, and Tesla will now join a competitive field in China, where at least 10 automakers and suppliers, including Huawei and Zping, are developing Level 2 autonomous driving capabilities.
And unlike Tesla, some competitors like Lee Auto and Zping offer similar systems for free on high end models, while others, such as Neo provide trial periods at no cost. The Level 2 systems, including Tesla's FSD, still require active driver supervision and hands on control. However, Elon Musk has indicated that more fully autonomous
vehicles are on the horizon. Tesla plans to reveal additional details about its robo taxi program in August, which could provide insights into his future autonomous vehicle strategy. A Tesla's autonomous driving system is built on an end to end neural network, a distinct departure from rule based algorithms. The AI enables the system to learn faster and make more human like decisions, a capability that sets Tesla apart from its competitors.
Other companies like Huawei are following Tesla's lead by developing end to end AI models for autonomous driving. Despite this, catching up with Tesla in terms of data and computing power remains a significant challenge for rivals. Now this is going to be a competitive market in the next year and these other companies will hop on the bandwagon and get more processing compute. Tesla's advantage lies in a supercomputer, Dojo, which trains the FSD system using video data from millions of
Tesla vehicles. This connected network, the largest fleet of its kind globally, provides Tesla with an unparalleled data advantage, essentially for advancing its self driving capabilities. And in parallel with the FSD rollout, Tesla has partnered with Baidu for in vehicle mapping and navigation services. This collaboration addresses one of the critical requirements for launching advanced self driving features in China, ensuring accurate lane level navigation
and mapping. Now, Tesla initially engaged Baidu for mapping services way back in 2020, but the partnership has now intensified to support more advanced autonomous driving functionalities. The development follows Musk's recent visit to China, where he sought approval for the FSD software to counter declining revenues. The suite of FSD features, while requiring constant oversight, aims to enhance Tesla's
autonomous driving offerings. The company's pricing strategy for FSD in China mirrors its approach in US, where customers can either purchase the software outright or subscribe monthly. Tesla also offers Enhanced Autopilot EAP in China and half the price of FSD has introduced subscription options for EAP, allowing customers to experience the technology for a monthly
fee. This flexibility and pricing and access models could boost adoption rates among China consumers, and recent developments such as Tesla Shanghai factory passing data security requirements have facilitated the broader acceptance of Tesla vehicles and restricted areas within China. This compliance with national standards enhances the credibility and marketability of Tesla's products. Now, the FSD software rollout in China is anticipated to generate significant interest and
discussion and revenue. Given the competitive nature of the Chinese EV market and the technological advancements it represents. The company's strategic moves and partnerships aims to solidify its position as a leader in autonomous driving technology in China and worldwide. Hey, thank you so much for listening today. I really do appreciate your
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