Tesla to Re-Launch FSD in China With Local Data Center

Elon Musk has advocated for a Q1 2026 relaunch of FSD in China, while the local leadership works to manage expectations and build out the necessary infrastructure.

Tesla China Vice President Grace Tao recently clarified that there is currently no specific timeline for an official FSD rollout in the Chinese market. Tesla previously launched FSD V13 to a very small userbase of Chinese HW4 owners, with expectations of future updates and eventual rollout for HW3 owners as well.

Since that initial wave, China has remained on V13 with no further updates due to regulatory restrictions. To move ahead, Tesla is activating a dedicated local AI training center and is hiring Autopilot Test Engineers in Shanghai to prepare for testing and approval.

Local AI Training

The most notable step in Tesla’s China FSD effort is the launch of a dedicated AI training center. This facility enables local training on Chinese vehicles and processes data within China; previously, regulations prevented data from leaving the country.

Grace Tao confirmed that the center is now operational and has sufficient computing power to support the development of localized assisted driving features. With data localization in place, Tesla can optimize FSD for Chinese conditions and better adapt to local driving behaviors and road layouts, rather than relying on internet videos and simulations.

On the Ground in Shanghai

Alongside the new computing infrastructure, Tesla is expanding its Engineering presence. New Autopilot Test Engineer roles have been identified at Gigafactory Shanghai in Lingang.

Lingang’s Nanhui New City has been designated as a testing zone where local authorities have allowed Tesla to conduct advanced autonomous driving tests on public roads under real traffic conditions. Hiring validation engineers for this area suggests localized road testing is moving into validation phases.

Closing the Gap

Although there is still no firm launch date—contrasting with statements from the Q4 2025 Earnings Call—the activation of the AI training center is a positive development.

By establishing a local data engine, Tesla can run its established training system in the world’s largest EV market. More cars will generate more training data, leading to additional improvements for local Chinese FSD builds in the near future.

As competitors such as Huawei, Xpeng, and Li Auto deploy AI datacenters in China to train on domestic data, Tesla’s local infrastructure helps ensure it does not fall behind.