Tesla Denies Rumors of Shanghai Data Center Withdrawal; FSD China Rollout Plans Unchanged — BigGo Finance

Tesla (NASDAQ: TSLA) China on August 26 publicly denied online rumors that its “Shanghai data center has been emptied out and the entire liaison team withdrawn,” calling the reports false. The rumors originated from self-media articles and user posts claiming that the Shanghai data center Tesla had prepared for its FSD (Full Self-Driving Supervised) China rollout had been vacated, the entire liaison team disbanded, and all positions eliminated. The topic briefly trended on Chinese social media.

Tesla China insiders, responding to inquiries from the National Business Daily and N Video, both explicitly stated that the reports were untrue. Public records show that Tesla’s Shanghai data center was completed in 2021 to store China operational data including factory production information. The company’s FSD data compliance and localization preparation work for the Chinese market continues to move forward.

Another factor behind the rumor’s spread relates to Tesla’s North America website recently updating its global list of regions where FSD Supervised subscriptions are available. The latest list shows only 12 regions worldwide currently offer FSD Supervised subscriptions: the United States, Canada, Mexico, Puerto Rico, Australia, New Zealand, South Korea, the Netherlands, Lithuania, Estonia, Denmark, and Belgium. China is notably absent. Some netizens speculated from this that Tesla might be scaling back or exiting its China market plans, compounding the “data center withdrawal” narrative.

However, upon further verification, this list has been misinterpreted. The list shows regions where FSD Supervised subscriptions can currently be activated—it is not equivalent to all regions where FSD Supervised can actually be used. Since the Chinese market has not yet opened FSD Supervised subscription services, China does not appear on this subscription list. On Tesla’s US website list of regions where FSD Supervised is available for use, China remains included.

China Market Expansion Continues

Tesla’s data compliance and localization preparation work in the Chinese market has in fact not stopped. Tesla’s Shanghai data center already retains all China-generated data locally. The AI training center in Shanghai’s Lingang area began operations in February 2026, and the company partners with Baidu Maps to use compliant high-definition mapping. Previously, Tesla models had passed four automotive data security standard certifications, laying the groundwork for further FSD adaptation and data compliance in the Chinese market.

In February of this year, Tesla Global Vice President Tao Lin publicly stated that the company would actively participate in the development of China’s advanced driver-assistance sector. She revealed at the time that while Tesla had not yet officially pushed the “full-capability FSD” to Chinese users, the company has been continuously adapting for the Chinese market, operates a training center in China, and has already deployed training capabilities tailored to the Chinese market. In May, Tesla also officially announced that FSD Supervised supports multiple countries and regions, including China.

From a timeline perspective, Tesla’s FSD rollout in China shows a pattern of steady advancement:

Note: Timeline compiled from public information

Stock Resilience Amid Recall Shadow

Notably, the “data center withdrawal” rumor emerged as Tesla faces its largest-ever vehicle recall in the Chinese market. According to GuruFocus, approximately 2.98 million locally produced and imported Tesla vehicles require repairs due to an emergency door release risk. That figure is roughly 6.2 times Tesla’s most recent quarterly deliveries, cutting deep into its China business.

Yet capital markets have reacted with relative calm. Tesla shares rose about 0.6% in Tuesday morning trading to $350.983, suggesting investors are not panicking over the recall news. Market analysts believe that if Tesla can resolve the issue through remote software updates, the direct financial impact could remain manageable. The bigger threats lie in tightening regulation, damaged consumer confidence, and potential design change costs. From a valuation standpoint, the stock trades only about 5.28% above GF Value’s estimate of $333.39, indicating the valuation is not overheated. Investors appear to be betting this remains a software-level fix rather than the start of a larger safety-related bill.

Tesla has yet to officially push the full version of FSD to Chinese users, but its data infrastructure and compliance framework buildout in China has not paused. The rapid clarification of these rumors also reflects, to some degree, the market’s heightened sensitivity to Tesla’s strategic direction in China. As competition in China’s intelligent driving market intensifies, whether FSD can successfully land in the market will remain a key variable for observing Tesla’s China business.