Tag Archives: Tesla

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Tesla Outpaces Chinese Rivals in Highway Driver-Assist Tech Testing

Tesla has come out on top in a high-profile series of tests evaluating advanced driver assistance systems (ADAS) on Chinese highways, beating out major domestic contenders including BYD, Xiaomi, and Huawei-led HIMA, according to results published by Dcar, the automotive outlet run by ByteDance.

The joint test—conducted by state broadcaster CCTV and Dcar—assessed Level 2 driving systems across more than 20 electric vehicle (EV) brands. Simulating a range of hazardous scenarios both on highways and in urban settings, the results have ignited intense debate on Chinese social media platforms where Dcar’s test videos have quickly gone viral.

Tesla’s Model 3 and Model X vehicles emerged as top performers, passing five out of six highway-focused evaluations. In contrast, BYD’s Denza Z9GT and HIMA’s Aito M9 each passed just three, while Xiaomi’s highly anticipated SU7 managed only one successful test.

Chinese authorities have taken note. “Chinese brands must admit to themselves that Tesla has an advantage in automated driving,” said Wang Yao, deputy chief engineer at the China Association of Automobile Manufacturers, during an auto forum in Shanghai. “Tesla has led trends in the industry so far, and we will learn from them in the future as well,” added Xiaomi CEO Lei Jun, citing a recent showcase in which a Tesla Model Y autonomously navigated from the company’s factory in Austin to a customer’s home—an estimated 30-minute drive.

Despite its success, Tesla faces major regulatory challenges in China. Elon Musk, writing on X (formerly Twitter), stated that “Tesla has achieved the best results in China despite laws prohibiting the inclusion of Chinese data in its algorithms.” The company remains hampered by Washington’s ban on training Tesla’s AI systems in China, while local regulators have so far refused to allow data collected in Shanghai to be transferred to the U.S. for algorithmic refinement.

Mounting Public and Regulatory Scrutiny in China

The ADAS spotlight comes at a time of growing skepticism among the Chinese public. A tragic crash involving a Xiaomi SU7 that killed three people on a highway has raised alarms over how these semi-autonomous systems are marketed and understood. State media blamed misleading promotional claims for the misuse of the technology, prompting a swift response from regulators.

Authorities have now banned EV makers from using marketing terms such as “smart driving” and “autonomous driving,” emphasizing that current systems still require full driver attention. The Ministry of Public Safety warned that legal liabilities will increasingly fall on drivers if they disengage from the road while such systems are active.

“The technology is not yet fully autonomous. Drivers remain responsible for their vehicles at all times,” the ministry stated, pledging new legal frameworks to clarify responsibility in the event of system-related crashes.

Meanwhile, Huawei-led HIMA dismissed the recent test results, saying it did not wish to comment on the “so-called test.” Neither BYD nor Xiaomi has responded to media inquiries regarding the evaluations.

The Road Ahead

While Tesla’s strong showing underscores its technical edge in automated driving, its regulatory constraints in China remain a significant hurdle. For domestic automakers, the results serve as a sobering reminder of the gap that still exists in ADAS performance—and the steep road ahead to win both consumer trust and global relevance in autonomous mobility.

Source: CCTV

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Tesla Bets on Budget Model Y Amid Mounting Losses and Regulatory Shakeup

Tesla is set to launch a more affordable version of its popular Model Y SUV in the coming months, as the electric carmaker grapples with financial turbulence, regulatory rollbacks, and shifting global markets.

First announced by CEO Elon Musk in January, the new variant is not an all-new model but rather a stripped-back version of Tesla’s best-selling EV. Production is expected to begin as early as August or September 2025, though Tesla has yet to confirm key details, including pricing, target markets, or production volumes.

Currently, the cheapest Model Y starts at £51,990 in the UK, suggesting that even a pared-down version will remain at the premium end of the EV segment for many consumers. Still, Tesla hopes the new entry-level offering will spark renewed interest—particularly in the United States, where a $7500 federal EV tax credit is on the chopping block.

The move comes at a crucial moment for the company. Tesla reported a 16% drop in income in the second quarter of 2025, down to $1.17 billion, with sales falling 13% and average selling prices declining. Operating expenses also rose, compounding the impact. Most notably, revenue from emissions credits—long a lifeline for Tesla—plummeted by 51% year-on-year, down $441 million from Q2 2024.

The steep decline is directly linked to President Donald Trump’s rollback of key electric vehicle mandates, including the revocation of Biden-era legislation requiring 50% of all new car sales to be electric by 2030. With the obligation to meet EV quotas now gone, rival automakers no longer need to purchase Tesla’s regulatory credits, cutting off a major revenue stream.

“These next few quarters could be rough,” Musk admitted during an earnings call, noting that while no downturn is certain, the economic outlook is increasingly volatile. The market responded swiftly: Tesla’s stock price fell 7% following the announcement.

Tesla’s woes extend beyond U.S. policy. In China—a key growth market—the company has struggled due to ongoing tariff disputes and Musk’s perceived alignment with Trump, which has triggered consumer backlash. Even an updated Model Y, released earlier this year, has failed to reverse the slide.

Despite the mounting challenges, Musk remains bullish on Tesla’s long-term prospects. He pointed to the company’s upcoming autonomous driving technologies and its ambitious robotaxi fleet, currently being piloted in Texas. The company is also investing in humanoid robotics, part of a wider vision that extends beyond car manufacturing.

“Once you get to autonomy at scale… I think I’d be surprised if Tesla’s economics are not very compelling,” said Musk, predicting a financial turnaround in the second half of 2026.

Still, with no confirmed mainstream EVs beyond the revised Model Y, and global headwinds building, Tesla’s immediate future looks anything but smooth. Whether autonomy, affordability, or sheer resilience will carry the company through remains to be seen.

Source: Autocar; Photo: Tesla

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Volkswagen Surpasses Tesla in European EV Sales for First Half of 2025

In a major shake-up of the European electric vehicle (EV) landscape, Volkswagen has overtaken Tesla as the top-selling EV brand in the region during the first half of 2025, according to new data from Dataforce. The German automaker sold 133,465 electric cars across the EU, EFTA, and UK markets between January and June — a commanding 78% increase over the same period last year.

In contrast, Tesla’s European performance faltered significantly. The U.S. brand saw its EV sales drop by 33%, totaling just 107,878 units in the first six months of the year. That decline cost Tesla its crown as Europe’s EV king, as Volkswagen surged ahead with a lead of 24,587 units.

While Tesla still held onto two of the top spots for individual model sales — the Model Y and Model 3 — it was the only major manufacturer to register a year-over-year sales drop. Even a June resurgence, where Tesla led the monthly EV sales charts, wasn’t enough to close the gap created earlier in the year.

Legacy Brands Making Electric Strides

Volkswagen’s triumph as a brand, not as part of the larger Volkswagen Group, underscores the shifting momentum in Europe’s highly competitive EV market. The brand’s success was largely fueled by strong performances from its ID lineup, including the ID.4, ID.7, and ID.3 — all of which ranked among Europe’s five best-selling EVs for the first half of the year.

Other European manufacturers also posted strong growth. BMW took third place overall with 93,576 EVs sold, marking a 14% increase year-over-year. Škoda, benefiting from the runaway popularity of the new Elroq and refreshed Enyaq, achieved a staggering 146% increase in sales, moving 70,947 units and cementing its status as a rising force in the EV space.

Renault also posted a notable 58% gain, thanks largely to the buzz surrounding the retro-styled Renault 5.

Tesla’s Global Challenges Reflect in Europe

Tesla’s global operations have encountered headwinds in 2025, with CEO Elon Musk previously attributing early-year production delays to factory upgrades needed for the revamped Model Y. Despite promises of a demand rebound, the company’s European numbers have yet to reflect any meaningful recovery.

In June alone, Tesla sold 32,605 EVs in Europe — a 21% decline compared to the same month in 2024. Meanwhile, its competitors surged ahead: Volkswagen sales grew by 9%, BMW by 16%, Škoda by a remarkable 189%, and Renault by 22%.

A Growing Market, but Shifting Leaders

The overall European EV market remains on a robust growth trajectory, expanding by 24% year-over-year. In the first half of 2025, a total of 1,177,051 electric vehicles were sold, up from 944,858 in the same period in 2024.

However, the dynamics within the market are evolving rapidly. Tesla’s early-mover advantage is being steadily eroded by established automakers who are now hitting their stride in EV development and production.

With Volkswagen firmly in the lead and competitors gaining ground, the second half of 2025 is set to be a pivotal chapter in the race for EV dominance in Europe.

Source: Automotive News