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Mercedes gets approval for Level 4 self-driving tests in China

Credit: Mercedes

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Mercedes-Benz has received approval in China to test Level 4 autonomous vehicles on certain roadways, ahead of Tesla’s plans to launch its Full Self-Driving (FSD) this year.

The automaker announced the approval from officials in Beijing over the weekend, letting them test Level 4 autonomous driving in which the vehicles “do the driving for most scenarios without human takeover,” as detailed in a report from South China Morning Post. The testing will focus on driving maneuvers, including U-turns, changing lanes, parking, roundabouts, toll booths, and more.

The approval marks the first foreign automaker to gain approval, and it comes as Tesla expects to gain full approval for its Full Self-Driving (FSD) by the end of this year.

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Mercedes will take on Tesla’s FSD in China

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Mercedes also gained approval to test Level 3 autonomous driving in China in December, and it says it’s implementing a “minimal-risk strategy” in all of its operations of fully driverless vehicles.

During Tesla’s Q2 2024 earnings call last month, Elon Musk said that the company was likely to gain regulatory approval for FSD Supervised in Europe and China by the end of the year, though its capabilities would be far behind those of North America at first. Tesla has gained a wave of tentative approvals in China throughout this year, and reports in June suggested that the company would be testing 10 vehicles with FSD software ahead of a wider rollout.

Tesla’s FSD Supervised is also generally considered to be a Level 2 of autonomy since it requires driver supervision at all times, according to the SAE International driving automation standards. It’s worth noting that Tesla’s FSD Supervised is available to consumers and is constantly being tested and trained by every driver who engages the system, which is eventually expected to lead to higher levels of autonomy.

Credit: SAE International

According to the SAE, Level 3 autonomous or automated driving includes cases where the driver does not have to monitor the vehicle’s driving, though they may have to take over and drive when the feature requests. Level 4 and 5 autonomy are categorized as those where driver interaction isn’t required at all.

Local companies such as Baidu, Hongqi, and WeRide have also been approved to test Level 4 autonomy, though Mercedes is the first from another country to gain approval. Another self-driving hopeful includes a joint venture between General Motors (GM) and Chinese company SAIC, which launched its own Level 2 autonomous driving software last month.

Mercedes approved for turquoise lights to signify self-driving mode

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla’s Supercharger Diner probably just secured more locations

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tesla diner
Credit: Tesla

Tesla’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.

The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.

Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:

On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.

Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.

Tesla makes major change at Supercharger Diner amid epic demand

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Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.

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Tesla short sellers win big after shares fall after earnings

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A red Tesla Roadster driving around a turn
(Credit: Tesla)

Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.

Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to BloombergShares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.

Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.

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However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.

S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.

Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.

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At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.

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Tesla door handle saga gets its latest chapter and a big change is coming

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Credit: Tesla | Model 3 Owner's Manual

Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.

On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.

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NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.

Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.

Tesla addresses door handle complaints with simple engineering fix

In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.

The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.

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It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.

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