Despite Tesla's market value soaring to 7 trillion yuan, the road for FSD to enter China has not been smooth. Recently, news spread that Tesla is communicating with SAIC on the authorization cooperation after FSD enters China, which has once again sparked public interest.

In fact, as early as April this year, rumors circulated that domestic automakers such as SAIC, BYD, and Geely were discussing the possibility of cooperation with Tesla after FSD enters China. The current communication between Tesla and SAIC is already the second round of negotiations. Although both parties have not yet reached a final conclusion or details, this news has undoubtedly caused considerable shock in the industry.

The main reasons for the difficulty of Tesla FSD's entry into China are the domestic regulatory landscape and whether vehicle hardware functions meet requirements. Additionally, whether to authorize domestic automakers for TO C or TO B use remains uncertain. The TO C model means Tesla licenses FSD technology to domestic automakers for installation in their models sold to consumers. However, this involves issues such as smart driving hardware matching, high costs, and market competition challenges, making the TO C model unlikely to be realized in the short term.

In contrast, the TO B model (Robotaxi) appears more feasible. Tesla's Robotaxi deployment in the US is not expected to begin until at least 2026, while domestic automakers such as SAIC's MAXUS and Geely's Caocao Mobility already have operational qualifications and existing FSD carriers. Therefore, the Robotaxi cooperation model between Tesla and domestic automakers like SAIC undoubtedly allows for faster implementation in China.

From Tesla's perspective, if the Robotaxi cooperation model with SAIC is successful, it will have replicable business operations in China. Tesla can cooperate with other domestic brands to further increase FSD penetration. Simultaneously, this will open up new profit growth points for Tesla in the domestic market.

It is worth noting that policy and regulatory support also provides a strong guarantee for Tesla FSD's entry into China. The "Action Plan for Reducing Costs, Improving Quality, and Enhancing Efficiency in Transportation and Logistics" issued by the two ministries mentions accelerating pilot projects for the entry and passage of intelligent and connected (autonomous driving) vehicles. Additionally, Tesla has obtained the "Automotive Privacy Protection" label authorization issued by the China Association of Automobile Manufacturers, becoming one of the first automakers to pass the evaluation. This policy and regulatory support undoubtedly clears the final hurdles for Tesla FSD's entry into China.

Although the road for Tesla FSD to enter China is full of challenges, Tesla has changed its approach. Through the Robotaxi cooperation model with domestic automakers such as SAIC, Tesla is expected to achieve rapid deployment of FSD technology in the domestic market. As an important domestic partner of Tesla, SAIC may become the first domestic automaker to adopt Tesla's FSD technology.