Beijing recently ‘greenlighted’ Tesla the ability to roll out its driver-assistance system, known as “Full Self-Driving,” or FSD. A new report suggests Tesla is testing vehicles equipped with FSD on city streets and highways in the world’s largest car market. 

Reuters cited a report from the government-backed Shanghai Observer that said ten Tesla vehicles with FSD are being tested ahead of what could be a much larger planned rollout later this year. 

Elon Musk has been strategically paving the way for an FSD rollout in China in recent months. His surprise visit to China on April 28, where he met with top Chinese officials, including Premier Li Qiang, clearly indicated Tesla’s deepening ties with China.

One day later, on April 29, news broke in US corporate media that Tesla would partner with Chinese tech giant Baidu for mapping and navigation software to support FSD, including satisfying regulators about data security and privacy requirements. Other reports said top Chinese officials gave Musk the greenlight to roll out FSD in some limited capacity.

In May, Reuters reported that Tesla was preparing to register FSD with Chinese authorities for a planned rollout later this year. Chinese state media also stated that Tesla had begun building a Megapack factory in Shanghai. 

The larger rollout of FSD in China will be a golden opportunity for Tesla to expand revenue streams amid the worldwide slump in EV sales. Also, this allows them to better compete with local rivals in China.