Tesla Removes ‘FSD’ from Smart Driving Software Package Name in China

Summary: Tesla has dropped the term “Full Self-Driving” (FSD) from its smart driving software names in China due to regulatory concerns. The features and pricing remain unchanged. This move aligns with China’s tightening autonomous driving regulations to prevent misleading claims. With the autonomous vehicle market projected to hit $500B by 2030, Tesla’s rebranding ensures compliance and may influence other automakers.

Tesla has officially dropped the term “Full Self-Driving” (FSD) from its advanced driver-assistance software package names in China. The move comes amid increasing scrutiny over autonomous driving terminology and regulatory concerns in the country.

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Tesla Rebrands Its Smart Driving Software in China

The top-tier package, formerly called “FSD Intelligent Assisted Driving,” has now been renamed “Intelligent Assisted Driving.” Similarly, other packages have been revised: “Basic Version Assisted Driving” is now “Basic Assisted Driving,” while “Enhanced Version Automated Assisted Driving” is now referred to as “Enhanced Assisted Driving.”

Despite these name changes, Tesla has confirmed that the functionalities and pricing of these packages remain unchanged. The renaming appears to be a strategic decision to align with China’s regulatory stance on the terminology used for autonomous driving features.

Why the Name Change?

China has been tightening its regulations on autonomous driving and related marketing claims. Authorities are concerned that terms like “full self-driving” may mislead consumers into overestimating the system’s capabilities. While Tesla’s FSD is an advanced driver-assistance system (ADAS), it does not provide full autonomous driving and still requires human supervision.

Tesla has faced regulatory pushback in multiple markets over its use of the term “Full Self-Driving.” In the U.S., the company has encountered lawsuits and scrutiny from agencies like the National Highway Traffic Safety Administration (NHTSA) and the California Department of Motor Vehicles (DMV), both of which have questioned whether the terminology could mislead consumers.

China’s Increasing Focus on Autonomous Driving Regulations

China is one of Tesla’s largest markets and a competitive hub for electric vehicles (EVs) and smart driving technology. The government has been implementing strict rules to ensure consumer safety and prevent misleading claims about autonomous driving capabilities.

According to a 2023 report by McKinsey & Company, China’s autonomous vehicle market is projected to reach $500 billion by 2030, with regulatory frameworks playing a crucial role in shaping the industry. This move by Tesla aligns with broader trends where automakers are carefully adapting their branding to comply with local guidelines.

Impact on Tesla and the EV Market

The renaming of Tesla’s software packages may set a precedent for other automakers operating in China. Companies like XPeng and NIO, which also offer advanced driver-assistance features, may take similar steps to ensure compliance with regulatory standards.

For Tesla, China remains a crucial market, accounting for a significant portion of its global sales. The company delivered over 600,000 vehicles in China in 2023, highlighting its dependence on the region’s market dynamics. By aligning its branding with regulatory expectations, Tesla is likely seeking to maintain its strong foothold in China while avoiding potential legal and reputational risks.

Tesla’s decision to drop the term “FSD” from its smart driving software package names in China is a clear response to growing regulatory scrutiny. While the change does not affect the functionality or pricing of Tesla’s driver-assistance features, it underscores the importance of transparency and compliance in the autonomous driving sector. As China continues to refine its regulations, other automakers may follow suit in adapting their branding and marketing strategies to align with local standards.

Source

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Last Updated on: Thursday, March 27, 2025 3:47 pm by Aarti Kumari | Published by: Aarti Kumari on Thursday, March 27, 2025 3:47 pm | News Categories: Business

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Aarti Kumari

Aarti Kumari is a passionate writer specializing in business and startup topics. With a deep interest in entrepreneurship and innovation, Aarti provides valuable insights into the world of startups, growth strategies, and business trends. Aarti’s writing delves into the challenges and opportunities faced by startups, offering guidance on topics such as business growth, fundraising, leadership, and market trends. Her work is informed by her passion for innovation, her curiosity about emerging industries, and her deep understanding of what it takes to build and scale a successful business. Aarti is a graduate from ICFAI University, Hyderabad.

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