TL;DR

TSLA up 50% as robotaxi plan dropped; FSD v13.2.9 rolls out; BYD, Xiaomi intensify competition.

Highlights

• Tesla stock rose over 50% in three weeks amid strong bullish investor sentiment and "buy the dip" activity1214.
• Tesla abandoned its robotaxi fleet plan, opting to upgrade and resell returned Model 3 and Model Y vehicles as used prices fall1.
• Full Self-Driving (FSD) v13.2.9 with supervised driving rolled out to Cybertruck and Model S/3/X/Y in North America9.
• Technical and regulatory hurdles persist for Tesla 's robotaxi ambitions, including UK delays to 2027 and possible LiDAR requirements13.
• Tesla launched a $1,000 discount on all new vehicles for students, teachers, military, first responders, and their families8.
• China’s NEV market reached 11 million sales and 47.3% penetration; Tesla and BYD stocks hit new highs10.
• BYD expands in Europe with a Hungary HQ and targets 50% overseas sales by 2030; Xiaomi to launch YU7 SUV in China, challenging Model Y65.
• Tesla received €159 million in EU funds for charging infrastructure, but faces political backlash over Musk’s views2.
• Japan may subsidize Tesla charging stations as part of U.S. tariff negotiations, supporting Asian infrastructure growth7.
• EVs in California are now cheaper to own than gasoline cars, though some Tesla models have high insurance costs11.

Commentary

Tesla ’s share price has rebounded sharply, reflecting renewed investor confidence and heavy participation in "buy the dip" strategies1214. The surge comes as the company continues to push software innovation, with FSD v13.2.9 now rolling out to a wider range of vehicles in North America9. However, the company’s pivot away from building a dedicated robotaxi fleet—choosing instead to upgrade and resell returned vehicles—signals a pragmatic response to softening used car prices and persistent regulatory uncertainty1.

Autonomy remains a key focus, but regulatory and technical obstacles are mounting. The UK’s delay on fully autonomous vehicle approvals until at least 2027, and the possibility that LiDAR requirements could exclude Tesla vehicles from future robotaxi services, highlight the risks to near-term deployment13. Meanwhile, competitive pressure is intensifying: BYD is expanding its European footprint, and Xiaomi is set to launch a direct Model Y competitor in China, underlining the need for Tesla to defend share in core markets65.

On the policy front, Tesla ’s receipt of significant EU funding for charging infrastructure is positive, but political scrutiny around Elon Musk’s statements could complicate future subsidies2. In Asia, Japan’s potential subsidies for Tesla charging stations as part of broader tariff negotiations may support further network buildout7.

Domestically, Tesla ’s new $1,000 discount for targeted groups and the overall lower cost of EV ownership in California could help drive volume, though high insurance costs for some models remain a challenge811. Shareholders should monitor regulatory developments on autonomy, competitive moves in China and Europe, and evolving government support in key markets.