Tesla has opened a low-profile artificial intelligence training center in China, as it places much capital on local expertise in order to fast-track its autonomous automobile targets.
Introduced on 6 February 2026 by the Vice President Tao Lin to Cailianshe, the plant targets the assisted driving systems to fit the needs of the Chinese roads, which are densely populated.
However, no specifications have been made public, the insiders are quoted saying it can support end-to-end neural network training.
Strategic Power Play
China is not only the production center of Tesla, it is also one of the key centers to develop artificial intelligence. In December 2025, Tesla’s Shanghai Gigafactory set a monthly record with over 97,100 deliveries.
The company told the Global Times that it delivered 851,000 units worldwide in 2025, which accounted for over half of its total deliveries in that year.
FSD Approval?
China reportedly shut down Elon Musk’s most recent timeline just as Tesla investors were getting excited about the possibility of a Full Self-Driving (Supervised) rollout in its second-largest market.
A recent report from Chinese state media claims that Musk’s assertion that FSD would be approved “next month” is just “not true.” This seems like a case of China’s no-nonsense and “Elon time” colliding.
Outlook Ahead
It is worth noting that this strategy is not without risks. Increased United States-China geopolitical tension can hinder the supply of semiconductor components, especially Nvidia GPU units, which are a good percentage of the Tesla hardware stack; however, the localization of data processing and algorithm development will overcome this threat.
However, the process of localization of data processing and algorithm development puts Tesla in a good stand to continue competing despite the tightening of regulatory and trade conditions, implying that its strategic position within China is shifting towards manufacturing-dependent to an all-encompassing, full-stack AI collaboration.
