Tesla upgrades Model Y in China for semi-autonomous driving

Tesla Elon Musk’s automaker said on WeChat on Thursday it had upgraded the self-driving hardware of its Model Y cars sold in China in a bid to boost sales and fend off growing competition from domestic companies.

When customers purchase Tesla Model Y, Hardware 4.0 (HW 4.0) will be included for free. HW 4.0 is a set of cameras, sensors and onboard computers designed to facilitate Tesla’s experimental driver assistance software, marketed as “Full Self-Driving Beta” or “FSD Beta.”

Tesla has not officially launched FSD Beta in China, but state media reported in November last year, citing company insiders, that the electric car maker was trying to release FSD Beta.

The American electric car maker has also launched new red, gray and silver colors for the Model Y in China.

HW 4.0 is Tesla’s most advanced set of hardware designed specifically for autonomous driving capabilities. It is said to have more processing power and better cameras, which is important for a car to understand its environment so it doesn’t hit people or other vehicles and objects.

Tesla has introduced HW 4.0 to Model S and Model X vehicles in some markets.

Tesla’s Model Y upgrade comes as the automaker lacks new mass-market vehicles as it faces growing competition in China, one of its most important markets.

In the fourth quarter, Warren Buffett-backed Chinese auto giant BYD Electric car sales exceed Tesla.

Tesla also faces competition from automakers such as NIO and Xpeng Motors.

Chinese EV companies hope to intensify competition by focusing on technology in areas such as autonomous driving features and better batteries.

Tesla’s latest hardware upgrade is one of its ways of dealing with this problem.

The company’s business has come under pressure as it cut prices globally last year to stimulate demand, which put pressure on its profit margins. Tesla warned last week that auto sales growth in 2024 “could be significantly lower” than last year.