Tesla Inc. (NASDAQ: TSLA) denied reports that it is winding down its Full Self-Driving (FSD) operations in China. The electric vehicle maker called the rumors false and confirmed it is not shutting down its Shanghai data center.

Clarification on Operations

According to a report by Tencent Technology, Tesla stated it is accelerating hiring processes for self-driving-related positions. The company also reported the rumors to the police. The speculation arose after Tesla did not list China among countries offering FSD Supervised subscriptions on some platforms, though its North American website still lists the market.

Regulatory Context

Tesla launched FSD in China in May this year following bilateral trade talks between President Donald Trump and Chinese President Xi Jinping. High-profile business leaders, including Elon Musk and Nvidia Corp (NASDAQ: NVDA) CEO Jensen Huang, accompanied the President to China.

Market Position

Tesla offers Tesla Assisted Driving in China for RMB 64,000, approximately $9,500. The company states driver assistance features will be introduced later on its Chinese website. Meanwhile, competitors like NIO Inc. (NYSE: NIO) and Xiaomi Corp. (OTC: XIACF, XIACY) are accelerating self-driving development, with Xiaomi recently unveiling an in-house chip.

TSLA shares rose 0.58% to $347.58 in pre-market trading.

Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk teased a new high-capacity vehicle on March 25, 2026, describing it as "something way cooler than a minivan." The comment came after Musk highlighted the Cybertruck’s family-friendly seating capacity, responding to user requests for larger models.

Product Strategy and Lineup Expansion

Musk’s remark follows the July launch of the long-wheelbase Model Y L in the U.S., which features three rows and six seats. Tesla lists the Model Y L Premium at $61,990, with an estimated range of 325 miles. The vehicle includes second-row captain’s chairs and free Full Self-Driving (FSD) Supercharging.

The CEO offered no name, specifications, or production timeline for the new vehicle. It remains unclear whether the reference points to a Cybertruck-inspired SUV, another family vehicle, or the already unveiled Robovan.

Robovan and Autonomous Ambitions

The Robovan serves as the clearest confirmed reference point for Tesla’s transport ambitions. Unveiled alongside the Cybercab at the "We, Robot" event in October 2024, the 20-seat autonomous vehicle is designed for "groups or goods, from mass transit to construction to food service." Tesla has not announced a price or production date for the Robovan.

This aligns with Tesla’s 2016 "Master Plan, Part Deux," which identified high passenger-density urban transport as a category ripe for electrification. The company also reported beginning pilot production of the two-seat Cybercab, which lacks a steering wheel or pedals, according to a 2026 regulatory filing.

Market Reaction

TSLA shares were down 0.07% to $349.98 during pre-market trading on Wednesday. Benzinga’s Edge Rankings show the stock underperforming across short-, medium-, and long-term trends.

What the Numbers Show

Tesla is diversifying its product strategy beyond traditional sedans and SUVs into high-density transport and autonomy. While the Model Y L addresses immediate family seating needs with a defined price point of $61,990, the Robovan and Cybercab represent longer-term bets on autonomous mass transit without disclosed pricing or timelines. This suggests a bifurcated approach: near-term revenue growth from expanded conventional models versus speculative future value from autonomous fleet solutions.