Tesla Inc. is readying a software update for customers in China to offer driver-assistance capabilities similar to those marketed as Full Self-Driving in the US, according to a person familiar with the matter.
Tesla shares jumped 1.7% in premarket trading.
The update planned for the coming days will allow Tesla owners to use driver-assist features on city streets, said the person, who asked not to be identified because the company hasn’t yet deployed the software. Tesla plans to tell customers the system will guide vehicles to exit ramps and intersections, and that it can recognize traffic signals, make turns and handle changing lanes and speeds.
The capabilities will be deployed to customers who’ve paid 64,000 yuan ($8,800) for what Tesla calls FSD. While the company markets its features as self-driving, they require constant human supervision and frequent interventions. Chief Executive Officer Elon Musk has for years been seeking regulatory approval for FSD to be allowed to operate on Chinese roads and been aiming to launch the system in China this year.
Musk said during Tesla’s quarterly earnings call last month that the carmaker was facing challenges with FSD in China because both Beijing and Washington had placed limits on how the company trains its system to handle local roads. The CEO said engineers were getting around this by looking at videos of streets in China that are available on the internet and using that footage for training.
Tesla has drafted language for the software update cautioning that the timing and effectiveness of some features may vary depending on the vehicle model and configuration. The feature for city streets will be introduced on select models and be gradually expanded, the person said.
