Tesla Opens AI Center in China, Shifts to FSD Subscription Model Amid Regulatory Challenges

February 6, 2026
Tesla Opens AI Center in China, Shifts to FSD Subscription Model Amid Regulatory Challenges
  • Seven Tesla owners in China have sued over FSD capabilities allegedly not meeting advertised features due to hardware limitations.

  • There is no clear timeline for full FSD approval in China, despite optimistic statements by Elon Musk and conflicting messages from Chinese officials; Tesla has offered FSD in China for years, constrained by regulation.

  • Tesla disclosed in February 2025 that about 1.1 million paying FSD users existed, roughly 12% of cumulative vehicle sales, marking the first public disclosure of paid FSD users.

  • Historically, Chinese customers could buy FSD for RMB 64,000, but the product’s rollout was limited; the 2026 shift toward a subscription model marks a global change.

  • Dutch authorities did not confirm Netherlands approval by early 2026, despite Tesla’s claim of imminent approval and ongoing discussions to demonstrate compliance.

  • Tesla has activated a new AI training center in China to localize development of its AI and ADAS, signaling an intensified push to expand in the Chinese market.

  • Grace Tao, Tesla vice-president, says the center has sufficient computing power for developing assisted-driving features but declines to share location or investment details.

  • Tesla will move to a monthly subscription model for Intelligent Assisted Driving starting February 14, discontinuing the one-time payment option globally.

  • FSD launched in China at 64,000 yuan with software-only access, with a subscription transition anticipated for mid-February.

  • Tesla aims to advance its FSD (Supervised) software, rebranded in China as Intelligent Assisted Driving, toward full approval, though no deployment timeline was given.

  • Following launch, a one-month free FSD trial was halted for regulatory compliance adjustments amid concerns over advertising claims and MIIT restrictions on terms like autonomous driving.

  • As of now, FSD (Supervised) is available in the U.S., Canada, Puerto Rico, Mexico, Australia, New Zealand, and South Korea, with tests underway in Israel and several European cities.

Summary based on 6 sources


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