Greater China Auto Parts (H): Tesla FSD China rollout: a key sentiment booster for ADAS & Tesla supply chain

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Greater China Auto Parts (H): Tesla FSD China rollout: a key sentiment booster for ADAS & Tesla supply chain

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Greater China Auto Parts (H)

Tesla FSD China rollout: a key sentiment

booster for ADAS & Tesla supply chain

Industry Overview

Tesla’s FSD is coming to China 21 May 2026

On May 21, Tesla indicated that the supervised version FSD can be used in China. In Equity

parallel, Tesla China has posted multiple job openings related to intelligent driving Greater China

testing. Further, during its 1Q26 earnings call, Tesla expressed expectations of obtaining Autos

regulatory approval as early as 3Q26. We view Tesla’s FSD rollout in China as a key Joey Yang, CFA >>

sentiment booster for ADAS supply chain & Tesla supply chain in China. Research Analyst

Merrill Lynch (Hong Kong)

Implications for ADAS policy, competition, monetization +852joey.z.yang@bofa.com3508 4021

On the regulatory front, we believe the gradual rollout of FSD signals continued Fiona Liang >>

advancement in China’s ADAS regulatory framework, which not only benefits Tesla, but Research Analyst

also provides a clearer reference point for Chinese OEMs to accelerate deployment of Merrill+852 3508Lynch4390(Hong Kong)

high-level ADAS features. In terms of competitive dynamics, FSD’s entry in China is fiona.liang3@bofa.com

likely to intensify competition with leading Chinese OEM/ADAS solution providers, which Jessie Lo >>

Research Analyst

should in turn accelerate iteration in high-end ADAS functions. From a commercialization Merrill Lynch (Singapore)

perspective, FSD serves as a key validation of the ADAS software monetization model – +65 6678 1134 jessie.lo@bofa.com

FSD’s successful adoption in China could strengthen consumers’ willingness to pay for

Ming Hsun Lee, CFA >>