Tesla (NASDAQ:TSLA) is going on the offensive in China, rolling out a free trial of its Full Self-Driving (FSD) system from March 17 to April 16. The limited-time promotion is open to Tesla owners with compatible hardware and software, as well as the latest navigation maps.

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However, Tesla faces tougher restrictions in China compared to the U.S. due to strict data regulations, which prevent the system from learning from local driving conditions. As a result, FSD in China is still classified as a Level 2 driver assistance system, meaning drivers must stay alert and ready to take control at all times.

Tesla has offered similar FSD trials in the U.S., where AI training compensates for outdated navigation maps, but China's tighter rules make things more complicated. The company is working with local tech giants like Baidu (NASDAQ:BIDU) to improve FSD functionality and navigate regulatory hurdles.

Stock Performance: A Rough Ride

Tesla's stock has been hit hard this year. Shares are down over 38% year to date, and the past month alone has seen a drop of nearly 30%. With a 42% decline from recent highs, Tesla is leading the broader stock market sell-off in recent weeks.

As the company pushes for FSD adoption in China, the market will be watching whether this trial moves the needle or if Tesla's stock continues to struggle.