/ December 5, 2025 Tesla shares closed at $454.53 on Thursday, marking a 1.74% gain, following a controversial announcement from CEO Elon Musk. He confirmed that the newest iteration of the company’s Full Self-Driving software, version 14.2.1, now permits drivers to send text messages while the system is engaged, contingent on the “traffic context.” This move has ignited significant debate, as texting while driving remains illegal across nearly all U.S. states, regardless of any active driver-assistance features. Regulatory Scrutiny and Legal Liability The update arrives as Tesla remains under investigation by the U.S. National Highway Traffic Safety Administration (NHTSA). That probe, initiated in October 2025, encompasses approximately 2.88 million vehicles and is examining 58 reported incidents, which include 14 crashes and 23 injuries. Investigators are focusing on instances where vehicles equipped with FSD ran through red lights or veered into oncoming traffic. Critically, Tesla’s FSD continues to be classified as a Level 2 system, meaning the human driver retains full legal responsibility. The company has merely adjusted the driver-monitoring parameters for certain scenarios without upgrading the system to a higher autonomy level, which would shift liability to the manufacturer. Contrasting Performance in Key Markets Positive delivery data emerged from China, providing a counterpoint to the regulatory concerns. Tesla’s Shanghai facility reported 86,700 vehicle deliveries in November, representing a near 10% year-over-year increase and a substantial 41% jump from October. Demand appears robust, with wait times for the Model Y now extending into January/February 2026, effectively indicating a sold-out status for 2025 in that market. However, the broader annual picture for Tesla in China shows challenges. Cumulative deliveries through November totaled 754,561 units, an 8.3% decline compared to the same period the prior year. The company continues to face intense competitive pressure from domestic rivals like BYD and Xiaomi.