Tesla denied rumors that it had abandoned efforts to launch its Full Self-Driving (Supervised) system in China, confirming that its Shanghai data center is “operating normally.” The company said, according to reports by Tencent Tech and National Business Daily, that hiring for driver-assistance-related positions is accelerating and that work on the project is progressing steadily. Tesla also said it had reported the claims to the police.
The statements came after posts circulated on Chinese social media on Tuesday claiming that Tesla’s data center in Shanghai had been vacated, that liaison teams had been withdrawn, and that positions related to the project had been eliminated. The center had been established to help prepare the infrastructure needed to launch FSD in the Chinese market, making the reports appear to signal a possible retreat by the company from its delayed project.
What Does the Company Confirm, and What Remains Unclear?
Tesla denies closing the Shanghai center or halting work, but the status of the product itself remains unresolved. China does not appear on Tesla’s updated list of the 12 markets where subscriptions to FSD (Supervised) are available, a list that includes the United States, Canada, Australia, South Korea, and several European countries. At the same time, the company’s U.S. website still lists China among the markets where the system is available for use.
This contradiction adds another layer of uncertainty to the FSD case in China. Tesla announced in May 2026 that it was making the system available in the country, then used the name “Tesla Assisted Driving” on its Chinese website. Nevertheless, the company has not yet published subscription prices or a timeline for a broad rollout to Chinese customers.
Local Data Does Not Mean Rollout Approval
According to the report, Tesla previously obtained the ability to train artificial-intelligence models inside China, a step connected to Beijing’s rules requiring data to remain local. But this step alone does not appear sufficient to launch the product on a large scale; Chinese regulators had previously stopped a statement by Elon Musk that approval for FSD would come “next month.”
In practice, the available information points to a separation between two different tracks: the company’s ability to continue technical work inside China on the one hand, and obtaining the approvals necessary to offer driver-assistance functions on urban streets on the other. Denying the withdrawal addresses the rumor, but it does not set a date for making the product available or specify its conditions of use.
Why Does This News Matter?
The delay is becoming more significant because Chinese companies are not waiting for Tesla’s status to be resolved. Xiaomi and Huawei have expanded their driver-assistance functions in Chinese cities, while Xpeng is preparing to launch an upgraded version of its Level 2 system. According to the original material, these systems have become competitors to the limited version of FSD available from Tesla in China.
Therefore, every month that passes without a clear rollout could weaken Tesla’s ability to use software as a differentiating factor in a market where it faces competition from lower-priced, feature-rich locally produced electric vehicles. The open question, based on the available facts, is not only whether the Shanghai center will remain, but also when Tesla owners in China will receive a full FSD product and whether regulatory approvals will allow a broad urban rollout.