Tesla secures China approval for Full Self-Driving software

Tesla confirmed that its Full Self-Driving (FSD) system, a supervised autonomous‑driving feature, has been approved for use in the Chinese market. The approval signals a shift in Tesla’s strategy from a traditional automaker toward a broader software‑focused business model, with China seen as a key growth lever. Despite the regulatory green light, analysts on Wall Street remain cautious, noting the company’s still lofty valuation – a price‑to‑earnings ratio around 380 – and questioning whether the market will fully reward the new software‑centric direction.

The development is expected to open a sizable revenue stream for Tesla in China, the world’s largest auto market, and could influence the company’s stock performance as investors weigh the potential upside against valuation concerns.