EV Daily | Tesla Faces FSD Liability Amid Federal Tax Credit Loss; BYD Celebrates Smart Driving Milestone

【Tesla】

Tesla faces challenges with its Full Self-Driving (FSD) package, resulting in reimbursements due to its failure to deliver unsupervised self-driving capabilities. Despite promises that vehicles built since 2016 could achieve this, Tesla has had to upgrade hardware multiple times, now aiming to deliver on HW4 cars. Doubts persist about the feasibility, and the situation has become a liability for Tesla, potentially requiring retrofits for millions of vehicles. Customers are losing faith and seeking refunds for the FSD package. Arbitration cases like that of a Washington customer reveal issues with Tesla’s disclosure and contract terms. Tesla’s profitability is under threat due to the removal of the $7,500 federal tax credit as a result of Trump’s Big Beautiful Bill. This is expected to significantly reduce demand for EVs in the US, impacting Tesla more than other automakers due to its reliance on emission credits. Contracts related to selling credits might be terminated, worsening Tesla’s financial outlook. Musk’s late response to the implications of the bill highlights potential risks and challenges for Tesla in light of regulatory changes. Tesla’s stock is affected, and the company may face further federal targeting by Trump.

【BYD】

BYD announced a major milestone with over 1 million vehicles equipped with its God’s Eye smart driving system, and plans a large-scale software update. The God’s Eye system varies by model, with the most advanced used in BYD's luxury Yangwang brand. BYD boasts significant sales growth, with over 2.1 million vehicles sold in the first half of 2025. The company plans to lead the transformation of intelligent driving with over 5,000 engineers dedicated to smart driving technology.

【Others】

Kia’s EV3 is the UK’s most popular retail EV, contributing to Kia’s success in the market. The EV3 offers two battery options and starts at £33,005. Kia anticipates further demand with the introduction of the EV4 hatchback. Kia is developing a more affordable EV starting below $30,000, projected for release later in the decade. Hyundai's Ioniq 9 SUV impresses with spacious design and advanced features, emphasizing comfort and efficiency. It draws design inspiration from sailboats and offers robust range and towing capacity. Hyundai's focus on luxury and performance positions the Ioniq 9 as a flagship EV. Honda is reevaluating its EV strategy in the US due to the anticipated impact of the BBB on EV demand, shifting focus to hybrid vehicles. Honda’s larger electric SUV plans are on hold, with the company continuing to launch other models like the Honda 0 Series. Porsche’s Cayenne EV demonstrates exceptional performance, showcasing towing capabilities and breaking records before its official launch. The Cayenne EV will be equipped for significant towing and is based on the same platform as the Macan EV. Paris’ Vélib bike-share system faces a crisis due to theft and misuse, with thousands of bikes going missing weekly. This undermines the system's reliability and threatens its role in sustainable urban transport. The city seeks solutions to balance accessibility with security to maintain user confidence in the service.