Tesla gains valuable endorsement for FSD in China

Electric vehicle giant, Tesla (NASDAQ:) has gained an important partner in their mission to promote their vehicles, as well as the company’s full self-driving program in China.

The Shanghai Municipal Commission of Economy and Informatization (SMCEI) has effectively endorsed the company through a public commitment released by the SMCEI, which was subsequently reported initially by the Global Times on Twitter.

Shanghai will further deepen cooperation with Tesla, pushing its layout on autonomous driving, robots and other business sectors in the city, said an official from the Shanghai Municipal Commission of Economy and Informatization.

The city will work with Tesla to build a technology industry cluster with core technology advantages for the global market, Chen Kele, deputy director of intelligent manufacturing promotion division at Shanghai Municipal Commission of Economy and Informatization, said today.

As noted in a separate report from CNeVPost, the announcement was also included in a televised tour of the Tesla Giga Shanghai facility earlier today. It should be noted that during the segment, while autonomous vehicle technology was mentioned numerous times, Tesla’s FSD offering was never explicitly named.

However, despite the support from SMCEI and others, headwinds for FSD introduction in China remain. The Chinese government requires autonomous driving permits, which aren’t easy to acquire, especially for automakers from outside China. Further, with the recent crackdown on foreign businesses and contractors operating in China, FSD expansion could be more politically difficult than ever.

Shares of TSLA are down 2.37% in afternoon trading on Friday.