News
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?
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.”
Maximum smoothness https://t.co/p4aM3StgRk
— Tesla (@Tesla) March 15, 2025
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.
Tesla FSD testers in China do seem to be built different. That’s some REALLY rural roads!
— TESLARATI (@Teslarati) March 14, 2025
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.
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
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla gives its biggest signal yet that Cybercab launch is imminent
Elon Musk challenges Tesla credit rating from Moody’s after SpaceX gets a higher one
