China Just Killed ‘Self-Driving’—And Tesla’s Playbook With It

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China’s new stringent regulations on autonomous vehicle advertising are sending shockwaves through the automotive industry.

On Thursday, tech news outlet TechCrunch cited a Reuters report, revealing that the Chinese government has imposed a blanket ban on terms like “autonomous driving,” “self-driving,” and “smart driving” during a recent meeting with automakers.

The report suggests that these regulations go beyond terminology, effectively blocking improvements to driver assistance systems via over-the-air software updates. Automakers are now prohibited from enhancing existing vehicles’ Advanced Driver Assistance Systems (ADAS) through software updates. Instead, manufacturers must secure government approval before implementing any ADAS upgrades or introducing new features.

This puts the brakes on the wireless software update model popularized by Tesla, a strategy that could have far-reaching implications for the industry.

Last month, a Xiaomi SU7 sedan caught fire after colliding with a utility pole following driver intervention, and Tesla’s Full Self-Driving (FSD) software has been linked to fatal accidents. The crackdown comes amid mounting safety concerns surrounding autonomous driving systems. Notably, Tesla had already rebranded its FSD system as Intelligent Driving Assistance for the Chinese market.

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