Tesla denies rumors of abandoning Full Self-Driving in China

Tesla China moved swiftly on August 26 to squash online rumors that it was pulling the plug on its Full Self-Driving efforts in the country. The company called the claims flat-out false, confirmed that its Shanghai data center is running normally, and said it’s actively hiring for driver-assistance roles. Then, in a move that suggests Tesla really wasn’t amused, it reported the rumors to police authorities. What the rumors claimed, and what Tesla said The online chatter alleged that Tesla had vacated its Shanghai data center, pulled back liaison teams, and cut positions related to FSD development in China. Tesla’s response was unambiguous. Operations at the Shanghai data center continue at full capacity, the company said, and recruitment for driver-assistance positions is accelerating rather than winding down. CEO Elon Musk had already set a precedent for this kind of pushback earlier in August 2026, when he dismissed separate rumors about a potential divestiture of Tesla’s China operations as “absurdly fake news.” The Shanghai facility serves a specific and legally mandated purpose: storing domestic data within China’s borders, in compliance with national laws that prevent sensiti...