Tesla share price dips after free Full Self-Driving trial in China
Tesla offers free FSD trial in China but faces investor skepticism
Tesla’s stock dropped nearly 5% on Monday, continuing its tough start to 2025. Investors remain concerned about the company’s ongoing challenges with its Full Self-Driving (FSD) technology in China, despite efforts to address the issue with a free trial of the software.
Takeaways
- Tesla shares have now fallen for eight straight weeks, with the stock shedding hundreds of billions in market value.
- Tesla is offering a free trial of its Full Self-Driving software in China from March 17 to April 16.
- Tesla faces increasing competition from local Chinese automakers like BYD, Xpeng, and Xiaomi, which have more advanced autonomous driving technology.
Ongoing Stock Decline Amid Regulatory and Market Concerns
Tesla’s stock has dropped nearly 5% in the past few days, continuing a broader slide that has lasted for eight consecutive weeks. This marks a concerning continuation of a rough start to 2025, with the company’s market value plummeting by hundreds of billions, reports Yahoo Finance.
Tesla Inc (TSLA) share price dynamics (2021 - Mar 2025) Source: TradingView
Over the past two months, Tesla’s stock has faced significant volatility, shedding a large portion of its value as investor sentiment weakens. The ongoing decline is compounded by challenges within key markets, especially China, where Tesla faces regulatory scrutiny and increasing competition from local EV manufacturers.
Free Trial for Full Self-Driving Software in China
Tesla announced a free trial of its Full Self-Driving software in China from March 17 through April 16. The offer is available not just to new customers, but also to current Tesla owners who have the necessary hardware, software, and mapping data installed in their vehicles.
Tesla hopes the trial will boost adoption of its autonomous driving technology, but the move has done little to allay concerns over the company’s long-term prospects in China, where the regulatory landscape remains uncertain.
Intensifying Competition and Data Challenges
Tesla’s Full Self-Driving technology has faced stiff competition from local Chinese companies like Xpeng, BYD, and Xiaomi, who have more advanced autonomous systems. In addition to this competitive pressure, Tesla is struggling with China’s data privacy laws, which prevent it from sending crucial data back to its U.S. headquarters for further training.
Tesla continues to face significant challenges in China, from regulatory hurdles to fierce competition. While the free trial of its Full Self-Driving software is a positive step, the company’s long-term prospects in the region remain uncertain. Investors will be watching closely as Tesla navigates these obstacles and works to maintain its leadership in the global EV market.
Reminder, a high-level Japanese group, including a former prime minister, has proposed a plan for Tesla to invest in Nissan following the collapse of its merger talks with Honda.
