As China prepares to implement new regulations on data security and the cross-border flow of information, Tesla and Porsche are some of the first foreign companies being sought out to share input on the proposals.
Officials in Shanghai are looking to enact strict regulations on cross-border data flow by March, and they’re asking for help from overseas companies like Tesla, Porsche, and others for a proposed three-tiered system, according to a report from South China Morning Post. The automakers are among 14 different auto firms crafting proposals for the new regulations, as reported by the Jiefang Daily and by one official from the Lingang Administration Commission who requested to remain anonymous.
The proposals are expected to make major strides toward relieving a “sore point” for foreign companies, soon defining what kind of data can legally flow outside of China. While analysts have welcomed the move, they also say that the central government needs to go further to address some common complaints from overseas businesses, including data management and compliance with national security laws, among others.
If enacted, the plans would create a three-tiered system of regulation for where certain data can flow, as detailed below:
- “General data” would be permitted to be transferred overseas freely.
- “Important data” would be permitted to be transferred overseas after passing a security review.
- “Core data” would have to be hosted within China and would be subject to the strictest oversight rules.
Earlier this month, Lu Sen, Data Management Chief of the Lingang Free-Trade Zone Administration Commission, said at a forum that state ministries had previously been creating specific lists of general data for automakers, and for those building autonomous vehicles, along with financial institutions, shipping businesses, traders, and drug manufacturers.
“Task forces have been formed to pool officials, experts and representatives from leading companies in these sectors together to hammer out lists and menus for differentiated supervision,” Lu said.
Further details on the categorization of data have not been released, though Lu also said that the list of general data would be gradually expanded over time.
According to a survey conducted last year surrounding business sentiment for the American Chamber of Commerce in Shanghai, roughly 70 percent of respondents pointed to digital policies such as data localization and other cybersecurity requirements as being a hindrance.
“There has been significant confusion, including cross-border data filing and declaration requirements, and companies are burdened by inefficiencies and compliance costs,” wrote the authors of the report.
In addition, 60 percent of survey respondents said they were uncertain about the interpretation and enforcement of the policies, with around 48 percent saying that the data and security laws caused increased operating costs.
Amidst several security concerns about Tesla a few years ago, the automaker made it a point to alleviate government uncertainty by announcing it would store all vehicle data locally in China, after the company’s vehicles were temporarily banned for use by military and government employees in certain locations.
Tesla treated as security threat in China as University Games loom
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
Ford is charging for a basic EV feature on the Mustang Mach-E
When ordering a new Ford Mustang Mach-E, you’ll now be hit with an additional fee for one basic EV feature: the frunk.
Ford is charging an additional fee for a basic EV feature on its Mustang Mach-E, its most popular electric vehicle offering.
Ford has shuttered its initial Model e program, but is venturing into a more controlled and refined effort, and it is abandoning the F-150 Lightning in favor of a new pickup that is currently under design, but appears to have some favorable features.
However, ordering a new Mustang Mach-E now comes with an additional fee for one basic EV feature: the frunk.
The frunk is the front trunk, and due to the lack of a large engine in the front of an electric vehicle, OEMs are able to offer additional storage space under the hood. There’s one problem, though, and that is that companies appear to be recognizing that they can remove it for free while offering the function for a fee.
Ford is now charging $495 on the Mustang Mach-E frunk (front trunk). What are your thoughts on that? pic.twitter.com/EOzZe3z9ZQ
— Alan of TesCalendar 📆⚡️ (@TesCalendar1) February 24, 2026
Ford is charging $495 for the frunk.
Interestingly, the frunk size varies by vehicle, but the Mustang Mach-E features a 4.7 to 4.8 cubic-foot-sized frunk, which measures approximately 9 inches deep, 26 inches wide, and 14 inches high.
When the vehicle was first released, Ford marketed the frunk as the ultimate tailgating feature, showing it off as a perfect place to store and serve cold shrimp cocktail.
Ford Mach-E frunk is perfect for chowders and chicken wings, and we’re not even joking
It appears the decision to charge for what is a simple advantage of an EV is not going over well, as even Ford loyal customers say the frunk is a “basic expectation” of an EV. Without it, it seems as if fans feel the company is nickel-and-diming its customers.
It will be pretty interesting to see the Mach-E without a frunk, and while it should not be enough to turn people away from potentially buying the vehicle, it seems the decision to add an additional charge to include one will definitely annoy some customers.
News
Tesla to improve one of its best features, coding shows
According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.
Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.
The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.
Here’s what they look like in action:
- Credit: u/ObjectiveScratch | Reddit
- Credit: u/ObjectiveScratch | Reddit
As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.
There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:
🚨 Tesla is quietly upgrading Matrix headlights.
Software https://t.co/pXEklQiXSq reveals a hidden feature:
matrix_two_stage_reflection_dip
This is a major step beyond current adaptive high beams.
What it means:
• The car detects highly reflective objects
Road signs,… pic.twitter.com/m5UpQJFA2n— BERKANT (@Tesla_NL_TR) February 24, 2026
According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.
Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.
Tesla’s revolutionary Matrix headlights are coming to the U.S.
This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.

