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Watch Tesla’s FSD tackle water cup challenge, dirt roads in China

How does Tesla’s Full Self-Driving face off against competitors in China when it comes to smoothness and scalability?

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Credit: 王船船 | Douyin (via Tesla on X)

Tesla’s Full Self-Driving (FSD) started going out for testing in China last month, representing the first market outside of North America to get the software. Amidst competition in the automated driving space from a number of other Chinese companies, Tesla’s FSD seems to be impressing in early reviews, with recent reviews highlighting both the software’s smoothness and its ability to adapt and perform well on non-traditional roads.

In a Saturday video originally posted by user 王船船 on Douyin, the Chinese version of TikTok, a driver utilizes the Supervised FSD system while performing what’s called the “water challenge,” in which a cup of water is balanced on the driver’s side window ledge to see if driving is smooth enough to avoid spilling.

The drive spans a little more than four minutes, and the system manages to make it through without the water spilling in any substantial quantities. The driver mostly remains on city streets, but you can see a handful of quick, unexpected stops, turns, and other maneuvers that one might expect to make the cup tip completely.

The video was also reposted on X by Tesla’s main account, with the company highlighting the system’s “maximum smoothness” as demonstrated in the video. Tesla VP of AI Ashok Elluswamy also reposted the video, saying in a separate follow-up post that “FSD’s been prepared for this one.”

Although Tesla’s FSD system didn’t have access to real-world driving data from the company’s vehicles at the time of its launch in China, Elon Musk recently explained that the company used publicly available video from the internet to help pre-train FSD for Chinese streets and traffic laws.

In addition to helping with city streets, Tesla has explained in the past that its camera- and video-based FSD neural network training makes the system easily scalable to multiple countries, fringe traffic cases, and even less traditional roads.

As another example of this in China, FSD testers also took to some dirt roads last week, showing just how well the software seems to handle some seemingly-deep and super-narrow back roads. You can see excerpts from this video below, or check out the full 25-minute version from user AE68 on Douyin.

READ MORE ON TESLA CHINA: Cheaper Tesla Model Y may launch in China

Tesla’s FSD in China amidst local competition

Tesla officially launched a localized data privacy version of FSD Supervised in China last month, The launch came amidst a headstart from multiple competitors in the autonomous driving space, including from Chinese automakers Baidu, Huawei, and still others.

The Avatr 11 electric vehicle (EV), a jointly created project from Changan New Energy, CATL, and Huawei, was recently seen being tested by Out of Spec’s Kyle Conner. The system uses Huawei’s latest automated driving system technology, Qiankun ADS 3.2, which Conner recently said was “the best driver assistance he’s ever experienced” in a recent review on his trip to China.

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You can see this video and an additional video from Conner and Out of Spec discussing the emerging autonomous vehicle industry in China below. It’s also worth noting that both of these were released just a few weeks before Tesla’s first version of FSD launched in the country.

The Best FSD System In China! 1 Hour Drive Using Huawei Qiankun ADS 3.2 Installed In Avatr 11 (2/1/25)

The EV Industry Isn’t Ready For China’s FSD Breakthrough (2/2/25)

Elon Musk clarifies the holdup with Tesla Full Self-Driving launch in Europe

 

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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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SpaceX Starship just nailed something it’s never done before

SpaceX’s Starship flew successfully Friday, landing both stages and deploying its first Starlink V3 satellites.

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Starship’s thirteenth test flight delivered exactly what SpaceX needed with a clean liftoff, two successful stage recoveries, and the first real payload the vehicle has ever carried to space. Booster 20 and Ship 40 lifted off at 5:51 p.m. CT from Starbase, and by the time the mission wrapped roughly an hour later, both halves of the rocket had done exactly what they were supposed to do.

Booster 20 separated from Ship 40 a few minutes into the flight and stuck a controlled splashdown in the Gulf of Mexico about six minutes after liftoff. That is a meaningful turnaround from Flight 12 in May, when the booster lost several engines during its boostback burn before a hard water landing attempt.


Starship 40’s performance was arguably the bigger win. The vehicle deployed the first 20 operational Starlink V3 satellites Starship has ever carried, then flew a suborbital arc to a landing in the Indian Ocean that SpaceX commentator Dan Huot called the company’s softest splashdown yet. “This is a dream scenario for this team that’s trying to get this heat shield data,” Huot said on the live broadcast, according to Space.com’s live coverage. “I’m a little over the moon right now. Wow. Lucky number 13.”

Unlike the mass simulators SpaceX flew on Flight 12, these were production Starlink V3 satellites, meant to extend solar arrays and antennas and attempt to link with the broader constellation before reentering minutes later. Getting real hardware through a full deploy sequence on only the second flight of the V3 generation keeps Starship on schedule for the payload work NASA is counting on for future Artemis lunar landings.

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— TESLARATI (@Teslarati) July 25, 2026

The flight also arrives at a moment when SpaceX needed a win. SPCX has traded below its $135 IPO price since mid-July, as Teslarati reported when the mission slipped to Friday, and short interest has climbed to roughly a third of the tradable float. A clean flight will not fix a balance sheet, but it does answer the one question SpaceX absolutely needed answered this week: whether the fixes made after the July 16 abort would hold up under real flight conditions. They did, on both stages, on the first try after the redesign.

SpaceX has not set a target date for Flight 14, though the company has said it wants to push toward an orbital attempt on the next mission. After Friday, that goal looks a lot more within reach.

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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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Investor's Corner

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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