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[Updated – Corrected] Tesla China denies rumored “Tesla” venture in Jinan, China

Image used with permission for Teslarati. (Credit: Tom Cross)

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Correction: 

A spokesperson from Tesla China has issued a statement about the reported joint venture. According to the Tesla China spokesperson, the venture “has nothing to do” with the Texas-based electric vehicle maker. Data from Chinese corporate registry Qichacha also showed that the “Tesla” in the filings was listed as “Tesla Motors Limited,” which is based in the UK. 

Context:

This story was initially sourced from data posted in Qichacha (QCC), a data and analytics company focused on China-based private and public companies. It’s a go-to service for company registration info in the country. Notable Chinese broadsheets such as Beijing Daily, the official newspaper of the Beijing municipal committee of the Chinese Communist Party (CCP), reported on the topic. Sina News, another news site that covered the story, also noted that the joint venture echoed a similar company established by BYD, which is also based in Jinan. The venture was also connected to the Jinan Licheng Financial Holding Group and the Jinan Licheng District Finance Bureau, both of which are close to the state. 

Following is a tweet Teslarati posted when the legitimacy of this story was challenged.

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**Original article is below.**

Tesla has plans to ramp its electric vehicle production by a notable degree in the coming years, and with the company’s constant innovations, it would need to secure a lot of resources, from battery raw materials to computer chips. 

In this light, reports have emerged suggesting that Tesla has established a semiconductor joint venture in Jinan of eastern China’s Shandong Province. The joint venture is intended to supply automotive chip and electronics solutions. Tesla partnered with Swiss automotive semiconductor company Annex for the joint venture, which boasts a registered capital of $150 million

As per a report from Chinese tech publication ijiwei, Tesla holds a 5% equity in the company for now, while Annex holds a 55% stake, and the Jinan Zurich Annex Equity Investment Fund Partnership holds a 40% stake. It should be noted that the Jinan Zurich fund acquired Annex this past June in a $5 billion deal, according to local reports. 

Tesla has a formidable partner in Annex, as the Swiss company is among the global leaders in automotive system-on-chip (SoC), microcontroller (MCU), and processor, image sensor, and power device products. This likely provides the joint venture with the necessary technical know-how and experience to develop optimal semiconductors for the electric vehicle maker and its products.

If the recent reports from China prove accurate, it would appear that Tesla is making a serious play for the semiconductor market. Just recently, for example, reports have suggested that Taiwan Semiconductor Manufacturing Company Limited (TSMC) would be Tesla’s supplier of choice for its next-generation FSD computer, which would reportedly be manufactured at 4 nm and 5 nm processes. 

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Tesla’s chip order from TSMC is reportedly substantial, so much so that it would effectively make the American electric vehicle maker one of the chipmaker’s top seven customers next year. These reports present a pretty exciting picture for Tesla next year, as the Cybertruck, the first vehicle in the company’s lineup confirmed to have a next-generation computer, would also be entering production in 2023. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla’s two defunct flagship models are getting a big upgrade

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Tesla’s two recently-defunct flagship models, the Model S and Model X, are getting a big upgrade, according to the company’s Head of AI, Ashok Elluswamy.

Older Hardware 3 Model S and Model X vehicles have been the last major holdouts in Tesla’s Full Self-Driving v14 Lite rollout, and that wait now appears to be ending.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

At Tesla’s Cybercab launch, AI chief Ashok Elluswamy told Ryan McCaffrey that he thought the S and X build “was supposed to go out last week.” Evidently, Elluswamy expects the suite to be rolled out to those HW3 Model S and Model X very soon:

Those cars are not the current Model S and Model X, which already ship with Hardware 4. They are the pre-refresh flagships built around Tesla’s older Autopilot computer, often called HW3 or AI3.

Tesla stopped putting that computer in new vehicles years ago, which is why owners treat these S and X cars as a closed generation. Model 3 and Model Y vehicles on the same computer began receiving v14 Lite in late June 2026 and saw a wider North American expansion in July. South Korea followed as an early international market. The S and X versions of the same software never joined that wave.

v14 Lite is Tesla’s way of squeezing the current v14 driving stack onto hardware that cannot run the full AI 4 model. The company describes the process as distillation: behaviors learned on the newer computer, including reinforcement learning and offline models, are compressed so the older chip and cameras can use them as a guide.

Early descriptions put the distilled network at roughly 15 percent of the original size. The result is still supervised Level 2 driving. Tesla has been clear that HW3 cannot support unsupervised Full Self-Driving or robotaxi operation because of memory and bandwidth limits.

The feature list is what made the wait so frustrating for S and X owners, as plenty of new features are to be shipped with it.

Official notes for the first Lite build, firmware 2026.20.5.1, added parking, unparking, and reversing; arrival options for a parking lot, street, driveway, or curbside; speed profiles that stay available at all times; and start-from-park engagement. Tesla also claimed better handling of merges, forks, pedestrians, traffic lights, and cut-ins, plus fewer false slowdowns and smoother lane centering.

A mid-July follow-on build, 2026.20.6.10, added more of the Hardware 4 interface, including a standalone Self-Driving app and the ability to start a trip from Park without a brake-pedal confirmation.

Elluswamy called that version the one “likely going to wide release.”

That wide release already reached most other HW3 cars in the United States and Canada. International timing still depends on regional validation and regulatory approval. For S and X owners, the remaining work appears to be model-specific validation rather than a new software stack.

There is no official Tesla changelog or build number for those two models yet, only Elluswamy’s offhand timeline. Some HW3 drivers who already have Lite report large gains over v12.6; others have described new indecision or phantom braking. The next test will be whether the same software lands cleanly on the older flagships that have waited the longest.

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Cybertruck

This tiny Tesla Cybertruck adjustment has big advantages

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Credit: Wes Morrill | X

Yesterday, we reported on Tesla Cybertruck getting some major adjustments from a manufacturing standpoint in an effort to make the all-electric pickup more cost-effective, more reliable, more serviceable, and more easily produced.

Tesla Cybertruck engineer reveals new changes in ‘constantly evolving’ pickup

One of those changes was the addition of a self-reinforcing polypropylene aero shield that sits underneath the truck. Previously, Tesla utilized aluminum for this, but the self-reinforcing polypropylene was more durable while also being cheaper and lighter.

Tesla has revealed another small change it made to the Cybertruck, and it has to do with the side repeater cameras.

Tesla does not wait for a new model year to improve its vehicles. On September 8, Cybertruck lead engineer Wes Morrill posted side-by-side photos of an updated side repeater camera housing now rolling off the line at Gigafactory Texas.

The triangular camera pod mounted on the front fender looks almost identical at first glance. A closer look reveals a revised contour that uses the air already flowing around the truck to keep the lens clearer in rain and road spray.

The side repeater cameras sit in an exposed position on the Cybertruck’s angular stainless-steel body.

In wet weather, they readily collect water droplets that can degrade the image Autopilot and Full Self-Driving use for lane changes and blind-spot monitoring. Early production trucks sometimes left owners wiping lenses by hand or accepting temporary restrictions on driver-assistance features.

Tesla has added washers to cameras on certain other models and on Cybercab prototypes, but those active systems add cost, complexity, and extra potential leak points.

The new housing solves the problem with passive geometry. Subtle changes in the surround create localized airflow disturbances as the vehicle moves. Those eddies physically push water droplets away from the optical surface. Morrill called the result “pure vision improvement” achieved at “no cost penalty.” Once the production mold is updated, every subsequent part costs the same as the original.

The advantages compound quickly. Clearer cameras in rain improve the reliability of driver-assistance features precisely when they are needed most. The design consumes no extra energy and introduces no new failure modes.

New Cybertrucks built after the tooling changeover receive the updated part automatically. Some owners of trucks delivered as late as June 2026 have already confirmed they received the revised housing. Retrofit questions have appeared in replies, and the cameras appear electrically compatible, though Tesla has not announced an official service program.

A few millimeters of reshaped housing will not make headlines the way a new battery pack does, but these changes are incremental and increase the Cybertruck’s effectiveness as a vehicle over time.

This improvement illustrates how Tesla continues to refine the Cybertruck after volume production began. Better wet-weather vision, zero added cost, and no extra hardware add up to a meaningful gain in everyday usability and safety.

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Tesla is rolling out a new FSD version with a massive safety addition

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Credit: Tesla

Tesla is rolling out a new version of its Full Self-Driving suite to some owners that comes with the massive addition of a safety feature.

Tesla is rolling out Automatic Collision Evasion with the 2026.27.6 Software Update, which started rolling out to some vehicles last night. We received the update, along with Full Self-Driving v14.3.9, as well as v14.2 Lite, which has identical release notes as the previous version and seems to have some refinements and improvements in behavior and performance.

However, most of the attention has fallen on the Automatic Collision Evasion feature, which we covered in an article last week.

The function will activate Full Self-Driving to “try to keep your vehicle safe and then continue driving. It can engage in the following situations while you are driving manually:

  • Scenario 1: A frontal collision is imminent and braking alone may not avoid it.
  • Scenario 2: Your vehicle detects that you are not sufficiently attentive to the road (for example, reaching toward the back seat), or that Full Self-Driving (Supervised) may have been unintentionally disengaged.”

Essentially, FSD will take over when the vehicle determines you are not paying sufficient attention or are heading toward a potential collision. The addition of this feature is incredibly useful as distracted driving is a major issue in today’s world.

Along with the new safety feature is Tesla FSD v14.3.9, which has no additional release notes compared to the previous version, but in my first drives, my first impression is that operation is great, and parking is still sort of a pain point.

Additionally, Tesla v14.2. Lite has arrived. A great review of that is available here:


The addition of an Automatic Collision Evasion feature is similar to that of other collision avoidance systems that are used by companies like Hyundai, Kia, and Genesis. These programs typically utilize radar and camera sensors to apply emergency brakes autonomously, though evasive steering in a manual driving mode is pioneered primarily by Tesla’s newest addition.

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