> Tesla needs better AI because they keep sending signals that they won't be at L5 anytime soon.

China now insists that self-driving cars be "SAE level 3.5" if they let the driver take their hands off the wheel. "If the driver fails to respond within the specified timeframe or is physically unable to take control (e.g., due to unconsciousness), the system must automatically initiate a Minimal Risk Manoeuvre (MRM). This includes the ability to change lanes and park the vehicle safely in a location that does not obstruct traffic, while minimising risks to passengers and other road users."[1] That takes effect in China July 1, 2027. Mercedes Drive Pilot is close to this level. Tesla, not even close.

That's probably the right answer in the assisted self driving space.

[1] https://www.electrive.com/2026/02/26/china-introduces-new-re...