Tesla Doubles Down on Vision-Only FSD in China, Faces Beijing’s Regulatory Test

テスラ is intensifying its long-standing vision-only approach to autonomous driving in 中国, 伝えられるところによれば announcing plans to roll out its camera-based 完全自動運転 (FSD) system for mainland-assembled vehicles—pending Beijing’s approval. In a Weibo post on May 4, 2025, the U.S. electric vehicle (EV) maker emphasized that its “visual processing solutions” will deliver safer, smarter driving across diverse scenarios, a move that pits Tesla against LiDAR-reliant competitors in China’s booming EV market.

A Familiar Strategy in a New Battleground

Tesla’s rejection of LiDAR isn’t breaking news for those following the company. Since 2016, イーロン・マスク has dismissed LiDAR—short for light detection and ranging—as too costly, famously calling it a “fool’s errand” in 2019. LiDAR uses lasers to map surroundings with high precision, often accurate to within inches, but Tesla has long bet on cameras, AI, and neural networks to achieve similar results at a lower cost.

By 2021, Tesla even phased out radar in some models, relying entirely on its “Tesla Vision” system for FSD. What’s new here is the context: Tesla is now navigating China’s unique regulatory landscape to deploy FSD, a market where LiDAR-equipped EVs are gaining traction. According to a 2025 China Securities report, one in four new cars on Chinese roads this year is expected to feature at least one LiDAR sensor—a trend Tesla is consciously bucking.

Beijing’s Oversight Looms Large

China’s regulatory environment poses a significant hurdle for Tesla’s FSD ambitions. In late February 2025, Beijing introduced stricter rules, requiring carmakers to submit detailed technical data before remotely releasing software updates—a process Tesla is currently undergoing to gain FSD approval. Earlier this year, Tesla offered a pre-order FSD package to mainland customers for 64,000 yuan (about $8,800 USD), but this version isn’t trained on Chinese road data, limiting its functionality. Adding complexity, China’s Ministry of Industry and Information Technology has urged EV makers to avoid terms like “autonomous driving” in marketing, citing safety concerns, which could force Tesla to adjust its messaging.

Competing in a LiDAR-Heavy Market

Tesla faces fierce competition in China, its second-largest market, where sales of China-made EVs dropped 11.5% year-over-year to 78,828 units in March 2025, per the China Passenger Car Association. Local giants like BYD, Geely, and Nio are leaning heavily on LiDAR to enhance their self-driving tech, while Huawei Technologies recently partnered with 11 Chinese carmakers on a self-driving safety initiative. Tesla’s vision-only stance makes it an outlier in a market increasingly favoring LiDAR’s precision, especially on China’s diverse and often chaotic roads—from congested urban centers to rural highways.

EVXL’s Take: A Make-or-Break Moment for Tesla in China

At EVXL, we see Tesla’s FSD push in China as a critical test of their vision-only philosophy. They’re not just sticking to their guns—they’re taking on a market where competitors are racing ahead with LiDAR, and regulators are watching closely. If Tesla can prove its cameras can handle China’s challenging driving conditions (think Beijing traffic jams or rural roads with unpredictable obstacles), it could redefine what affordable self-driving tech looks like. But if Beijing’s approval process drags on, or if vision-only FSD stumbles, Tesla risks losing ground to rivals who are already winning over Chinese drivers. For EV fans, this isn’t just another chapter in Tesla’s vision story—it’s a high-stakes showdown that could shape the future of autonomous driving in the world’s biggest EV market.