--- title: "China Galaxy Securities: Tesla FSD's entry into China will catalyze the industry's intelligent transformation process" type: "News" locale: "en" url: "https://longbridge.com/en/news/287927000.md" description: "China Galaxy Securities released a research report stating that Tesla's FSD entering China will enhance consumers' willingness to pay for advanced intelligent driving features, shifting the industry from supply popularization to experience upgrades and demand-driven payments, becoming an important catalyst for the process of intelligence. Although vehicle sales in April saw a month-on-month and year-on-year decline, export demand remains strong, and domestic demand is expected to gradually improve with new product deliveries and policy support" datetime: "2026-05-28T13:20:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287927000.md) - [en](https://longbridge.com/en/news/287927000.md) - [zh-HK](https://longbridge.com/zh-HK/news/287927000.md) --- # China Galaxy Securities: Tesla FSD's entry into China will catalyze the industry's intelligent transformation process According to the Zhitong Finance APP, China Galaxy Securities released a research report stating that the introduction of FSD (Full Self-Driving) in China will enhance consumers' willingness to pay for advanced intelligent driving features, shifting the industry from supply-driven proliferation to experience upgrades and demand-driven payments, marking an important catalyst for the industry's intelligent transformation. The report maintains a positive outlook on the intelligent driving sector, with the implementation of FSD expected to drive the valuation recovery and performance realization of core intelligent components such as drive-by-wire chassis, sensors, and domain controllers. **Key points from China Galaxy Securities are as follows:** The China Association of Automobile Manufacturers (CAAM) released the production and sales data for the automotive market in April. In terms of total volume, both sales and production saw declines compared to the previous month and year, primarily due to price adjustments by some automakers and tightening financial plans, coupled with rising upstream material costs such as lithium carbonate and storage, which increased the barriers for consumers to purchase vehicles and put pressure on manufacturers' operations, temporarily suppressing end transactions. Structurally, domestic demand remains weak, while high export demand continues against the backdrop of rising oil prices and the promotion of electrification overseas. Looking ahead, on one hand, based on the weak domestic demand in Q1 and the continued pressure on April sales, it is highly likely that domestic demand will still face pressure year-on-year in the second quarter. However, with the concentrated delivery of new models after the auto show and the continued implementation of trade-in policies under the national framework, supported by local governments, the certainty of a month-on-month improvement in domestic demand is stronger. On the other hand, overseas demand for new energy vehicles remains robust, with an increase in the export share of new energy vehicles and continued order demand in a high oil price environment, suggesting that exports are likely to maintain a high level of operation. In April, automotive production was 2.575 million units, down 1.7% year-on-year and down 11.7% month-on-month, while sales were 2.526 million units, down 2.5% year-on-year and down 12.9% month-on-month. Domestic sales accounted for 1.625 million units, down 21.6% year-on-year and down 19.7% month-on-month. The dual decline in the domestic automotive market in April was due to the high base effect from policy subsidies in the same period last year, and the year-on-year performance was weaker than expected, while the month-on-month decline aligned with the seasonal pattern caused by fewer effective sales days during the Qingming Festival and spring break. Export sales reached 901,000 units, up 74.4% year-on-year and up 3% month-on-month, continuing a high growth trend against the backdrop of strong overseas demand. The China Automobile Dealers Association predicts that the narrow passenger car retail market scale in May will be approximately 1.52 million units, a month-on-month increase of 9.9%, with new energy retail volume expected to be around 950,000 units, a month-on-month increase of 12%, and a penetration rate of about 62.5%. From May 1 to 10, the national passenger car market retail reached 407,000 units, down 21% year-on-year, but up 36% compared to the same period last month. **Tesla's FSD supervisory version has officially been included in China's open list, accelerating the pace of industrialization in intelligent driving.** On May 21, 2026, Tesla officially announced that China has been included in the global open list for the FSD supervisory version. This version is based on the UN R-171 regulation and is defined as L2-level advanced driver assistance, not fully autonomous driving, with driving rights and responsibilities still belonging to the driver. Currently, the function is still in the domestic regulatory approval stage and has not yet been pushed to ordinary users. Tesla's CFO stated in April that FSD is expected to be approved in China in the third quarter of this year. **Biweekly Market Review** In terms of sub-sectors, the biweekly price changes for components, commercial vehicles, motorcycles and others, sales and services, and passenger vehicles were +0.67%, -0.05%, -2.22%, -5.89%, and -8.10%, respectively In terms of valuation, the price-to-earnings ratios for sales and services, parts, motorcycles and others, passenger vehicles, and commercial vehicles are 31.58x / 30.98x / 26.93x / 23.24x / 20.95x, respectively. The price-to-book ratios for motorcycles and others, parts, commercial vehicles, passenger vehicles, and sales and services are 3.41x / 3.18x / 2.42x / 1.74x / 1.39x, respectively. **Risk Warning:** The risk of automobile sales falling short of expectations; the risk of policy effects not meeting expectations; the risk of intensified industry competition; the risk of humanoid robot mass production not meeting expectations ### Related Stocks - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [07766.HK](https://longbridge.com/en/quote/07766.HK.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [06881.HK](https://longbridge.com/en/quote/06881.HK.md) - [601881.CN](https://longbridge.com/en/quote/601881.CN.md) ## Related News & Research - [SPECIAL REPORT-Why Tesla’s AI trainers don’t trust its self-driving tech - or its safety stats](https://longbridge.com/en/news/287895920.md) - [Tesla FSD coast-to-coast Canada drive completes day 1 with zero interventions](https://longbridge.com/en/news/287540462.md) - [Fully Self-Driving Technology Positions Tesla Stock for Another Wave of Value Creation](https://longbridge.com/en/news/287665641.md) - [Tesla removes one-time FSD purchase option across Europe and the UK](https://longbridge.com/en/news/287380061.md) - [Tesla’s FSD testing in Belgium surpasses 2,000 km in only one week](https://longbridge.com/en/news/287407414.md)