Tesla drivers are racking up fines using FSD in China
Tesla drivers in China are using the new Full Self-Driving update and are racking up fines as the system drives in bike lanes and makes illegal turns.
As we reported earlier this week, Tesla has started to release advanced driver-assist features sold under its Full Self-Driving (FSD) package in China.
The feature is called “Autopilot automatic assisted driving on urban roads” as Tesla seems more cautious about using the term “Full Self-Driving” in China, but it is a feature known for being in the FSD package everywhere else.
Tesla has been facing a lot of issues in releasing FSD features in China. The automaker has been limited in its neural net training due to restrictions about data coming in and out of the country, and it found it difficult to adapt to regulations regarding bus lanes and other China-specific road rules.
CEO Elon Musk warned that FSD in China would be a problem during Tesla’s earnings call last month due to the different rules. He mentioned bus lanes as an example:
By the way, were about the biggest challenges in making FSD work in China is the bus lanes are very complicated. And there’s like literally like hours of the day that you’re allowed to be there and not be there. And then if you accidentally go in that bus lane at the wrong time, you get an automatic ticket instantly. So, it’s kind of a big deal, bus lanes in China.
The automated ticketing system is not just for bus lanes and Tesla owners are learning about it the hard way.
Tesla owners have been testing out the features in live streams on social media and some of them are reporting getting numerous tickets for using FSD.
For example, this Tesla driver received 7 tickets in the space of a single drive because the FSD drove in bike lanes and made illegal maneuvers:
Car News China tracked several live streams and customer feedback on Chinese social media, and the consensus appears to be that it’s “pretty good, but with lots of bugs”.
The drivers are particularly impressed with how “natural” FSD drives, but they also noted that it still
Where the system lacks is the understanding of local traffic rules (such as no use of shoulder/bike lanes on turns, similar to the bus lane rules that Elon talked about in the most recent earnings call) and the sporadic use of wrong lanes (e.g. going straight in a left or right turn only lane) or navigation showing the vehicle in one lane when in fact it’s in another or wrong perception of objects (red balloons as traffic lights). Many of the live streams counted the number of traffic violations from the vehicle and the number of points that would have been taken off or licenses suspended (12 points = suspension) as a result.
Chinese media websites are now getting flooded with Tesla vehicles running red traffic lights, failing to recognize green lights, and driving on restricted lanes, like the video above.
The report also highlights how Tesla is facing strong competition in ADAS in China, with competitors like Nio, Xpeng, BYD, and others launching competitive products, which is not necessarily the case in other markets for Tesla.
Electrek’s Take
I feel like this is likely going to result in bad PR for Tesla in China. You can’t have drivers losing their licenses because FSD doesn’t recognize bike lanes.
Now, of course, Tesla will say that the driver remains responsible, but I don’t know how good Tesla’s messaging is on that front in China.
It’s going to be an interesting story to track in the coming months.
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Signage is seen at the United States Department of Justice headquarters in Washington, D.C., August 29, 2020.
Andrew Kelly | Reuters
Federal prosecutors in Brooklyn have charged the founder of a U.S.-based cryptocurrency payments firm with operating what they allege was a sophisticated international money laundering scheme that moved over half a billion dollars on behalf of sanctioned Russian banks and other entities.
Iurii Gugnin, a 38-year-old Russian national living in Manhattan, was arrested and arraigned Monday and ordered held without bail pending trial.
Gugnin faces a 22-count indictment accusing him of wire and bank fraud, violating U.S. sanctions and export controls, money laundering, and failing to implement legally required anti-money laundering protocols.
“The defendant is charged with turning a cryptocurrency company into a covert pipeline for dirty money, moving over half a billion dollars through the U.S. financial system to aid sanctioned Russian banks and help Russian end-users acquire sensitive U.S. technology,” Assistant Attorney General Eisenberg said in a statement.
Prosecutors said Gugnin used his companies — Evita Investments and Evita Pay — to process about $530 million in payments while concealing the origins and purposes of the funds. Between June 2023 and January 2025, he allegedly funneled the money through U.S. banks and cryptocurrency exchanges, primarily using tether, a widely used, dollar-pegged stablecoin.
Clients included individuals and businesses linked to sanctioned Russian institutions such as Sberbank, VTB Bank, Sovcombank, Tinkoff, and the state-owned nuclear energy firm Rosatom.
To carry out the scheme, Gugnin allegedly misrepresented the scope of his business, falsified compliance documentation, and lied to banks and digital asset platforms about his ties to Russia. Prosecutors say he masked the source of funds through shell accounts and doctored more than 80 invoices, digitally erasing the identities of Russian counterparties.
Investigators also cite internet searches indicating he knew he was under scrutiny, including queries like “how to know if there is an investigation against you” and “money laundering penalties US.”
The Justice Department said Gugnin maintained direct ties to members of Russia’s intelligence service and officials in Iran — countries that do not extradite to the U.S.
He is also accused of helping the export of sensitive U.S. technology to Russian clients, including an anti-terrorism-controlled server.
Gugnin was profiled last fall in a Wall Street Journal article about high-net-worth renters in Manhattan, where he reportedly paid $19,000 per month for an apartment.
If convicted on bank fraud charges, he faces a statutory maximum sentence of 30 years in prison, but if convicted on all counts, Gugnin could be given a consecutive maximum sentence significantly longer than his lifetime.
Despite China’s recent warning, BYD is ramping up the pressure on rivals with another ultra-affordable electric vehicle. BYD launched the Seal 06 EV, starting at just over $15,000, as the price war in China appears to be getting out of hand.
Meet the BYD Seal 06 EV
The new Seal 06 EV arrives after the China Automobile Manufacturers Association (CAMA) issued a warning last week, stating an automaker’s recent price cuts are “triggering a new round of price war panic.”
Although the statement didn’t single out BYD, it’s pretty obvious who they are referring to. BYD cut prices (again) on May 23 by up to 34% across 22 of its most popular models. Its cheapest electric car, the Seagull EV, now starts at just 55,800 yuan ($7,800).
BYD is now turning up the heat with another low-cost EV rolling out. The Seal 06 EV officially launched in China, starting at just 109,800 yuan, or about $15,300.
It’s available in three trims with two BYD Blade LFP battery pack options: 46.08 kWh or 56.64 kWh, providing a CLTC range of 470 km (292 miles) and 545 km (339 miles).
The electric sedan measures 4,720 mm in length, 1,880 mm in width, and 1,495 mm in height, approximately the same size as the Tesla Model 3 (4,720 mm in length, 1,850 mm in width, and 1,443 mm in height).
Like most new BYD vehicles we’ve seen, the new Seal 06 EV is equipped with its God’s Eye ADAS and DiPilot 100 smart cockpit system. However, unlike some of the more premium models, the Seal 06 uses a camera system rather than LiDAR.
The new EV joins BYD’s Seal lineup of vehicles, which includes the hybrid Seal 06 DM-i and the popular electric Seal sedan models.
Inside features a similar setup to BYD’s other new vehicles with a 15.6″ rotating center infotainment and a smaller driver display screen.
Although the Seal 06 EV starts at 109,800 yuan ($15,300), BYD promises “with over 33 hard-core standard features, the entry-level version is high-end.”
It features a few added amenities not typically found in entry-level cars, including heated and ventilated front seats, a panoramic sunroof, ambient lighting, and a surround sound stereo system. It even has a built-in refrigerator that can heat and cool.
Will it compete with Tesla’s Model 3 in the Chinese market? Although it features less range, the Seal 06 EV is half the cost. The base Model 3 RWD starts at 235,500 yuan ($32,800) in China with a CLTC range of 634 km (394 miles). Which one would you buy? Let us know in the comments.
After slashing prices again last month, another low-cost, but well-equipped BYD EV is arriving in China. Will the Seal 06 EV pressure others, like Tesla, to follow suit? We will find out shortly.
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The US solar industry is still booming, but looming policy threats could pull the plug on that momentum.
According to the new US Solar Market Insight report from SEIA and Wood Mackenzie, the industry installed 10.8 gigawatts (GW) of new electricity-generating solar in Q1 2025, with solar and storage making up a whopping 82% of all new capacity added to the grid.
And US solar manufacturing is also on a roll: The first quarter saw 8.6 GW of new module manufacturing capacity come online, the third-largest quarterly increase on record.
That growth came from eight new or expanded factories in Texas, Ohio, and Arizona. Meanwhile, US solar cell production doubled to 2 GW, thanks to a new factory in South Carolina.
But the industry’s rapid expansion is under threat. New tariffs and the “Big, Beautiful Bill” passed by the House that would gut clean energy tax incentives are injecting serious uncertainty into the market. SEIA warns that if the Senate doesn’t act to fix the legislation, the consequences will be severe: factory closures, energy shortages, job losses, and higher electricity bills.
“Solar and storage continue to dominate America’s energy economy, adding more new capacity to the grid than any technology using increasingly American-made equipment,” said SEIA president and CEO Abigail Ross Hopper. “But our success is at risk.”
According to SEIA, if Congress doesn’t change course, 330,000 jobs could disappear, along with 331 planned or operating factories and $286 billion in local investment. Americans could also see $51 billion in higher power bills.
Tariff uncertainty is already rattling the industry. Anti-dumping and countervailing duties (AD/CVD) on Southeast Asian solar cells and modules, plus other tariff shifts, are adding to the instability. Meanwhile, proposed changes to clean energy tax credits would undercut long-term planning for manufacturers and developers alike.
“The 10.8 GW of solar capacity installed in Q1 2025 represents a significant portion of new US electricity generation,” said Zoë Gaston, principal analyst at Wood Mackenzie. “However, our analysis suggests that the US solar market has yet to reach its full potential.”
And it’s not just analysts raising red flags. SEIA and Wood Mackenzie have downgraded their five-year outlook for every solar segment except community solar. Residential solar is expected to drop 14% compared to previous projections, and utility-scale solar is down 6%. If the clean energy tax credits are rolled back, that outlook could fall even further.
One major point of tension is politics. Texas led the nation in new solar capacity in Q1 2025, and Florida overtook California to land in second place. Eight of the top 10 states for solar installations in the quarter voted for Donald Trump in 2024.
That means the places most at risk if the House bill isn’t fixed are represented by Republicans.
SEIA says that if clean energy tax incentives are gutted, US energy production will drop by 173 terawatt-hours (TWh), and the country will not be able to compete with China in the global race to power AI.
The bottom line: The US solar industry is scaling up fast, but policy missteps could slam on the brakes just when momentum is peaking.
Read more: Trump’s ‘Big, Beautiful’ bill will cause a US energy shortage – SEIA
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