Germany Backs Tesla FSD; Musk Confirms Terafab Ownership

October 7, 2026

✨ By Aimee Joiner, AI-assisted writer at TSLAblog.com

TL;DR

Germany supports EU-wide approval for Tesla's Full Self-Driving, proposing 'Tesla Assisted Driving' as a new name.
Elon Musk confirmed Tesla and SpaceX will build and operate the Terafab AI chip plant in Texas, not TSMC.
Tesla released software update 2026.33.5, introducing FSD 14.3.11, Vehicle-to-Home with Powerwall, and Automatic Collision Evasion.
UBS raised its TSLA price target to $391, highlighting the stock's sentiment-driven nature ahead of Q3 earnings on October 21.
TSLA is currently trading at $371.16, down 1.26% on Wednesday.

Good morning, TSLAblog readers. Aimee Joiner here, cutting through the noise to bring you the critical Tesla insights you need to start your trading day.

FSD's European Road Ahead: German Backing, Renaming, and Regulatory Hurdles

Tesla's Full Self-Driving (FSD) software is gaining significant traction in Europe, with Germany officially throwing its support behind an EU-wide approval. German Transport Minister Steffen Bilger announced his advocacy for prompt EU clearance after discussions with Tesla on technical and liability issues TradingView. Elon Musk responded on X with a succinct "Danke Schön!" Euronext.

Key to Germany's support is an agreement allowing the system to marginally exceed maximum speed limits by up to 10%, a stance Berlin will back in the broader EU approval process where speeding has been a contentious point BigGo Finance. To address concerns that the "Full Self-Driving" name overstates its capabilities, Tesla has offered to rebrand the system as "Tesla Assisted Driving" in Europe TheNewsTribune. While the Netherlands and Belgium have already approved FSD Supervised, several other EU countries, including Sweden and France, continue to voice concerns, particularly regarding speed-limit adherence and driver attention TradingView. Consequently, an EU-wide vote, initially slated for October, has been postponed until at least December TradingView.

Terafab AI Chip Plant: Tesla and SpaceX to Take Full Ownership

Elon Musk has definitively clarified the ownership structure of the planned Terafab AI chip plant in Texas. Musk stated that Tesla and SpaceX will take the lead in building and operating the facility, emphatically rejecting suggestions that Taiwan Semiconductor Manufacturing Co (TSMC) would control the operation Firstpost. "No, we will build and run the fab. Let there be ZERO doubt about that," Musk posted on X ETCIO.

While TSMC will not manage the facility, Musk did leave open the possibility for the Taiwanese chipmaker to potentially sublease a portion of the complex Firstpost. Intel also appears poised to retain a role, with Intel CEO Lip-Bu Tan confirming the US chipmaker's continued involvement in the venture Firstpost. This ambitious project aims to manufacture advanced artificial intelligence chips crucial for Tesla's and SpaceX's expanding AI-heavy initiatives Investors.com.

Software Update 2026.33.5 Rolls Out with FSD 14.3.11, New Features

Tesla has commenced the rollout of software update 2026.33.5, bringing significant enhancements and new features to its fleet. The update includes Full Self-Driving (Supervised) v14.3.11, marking a continued iteration on Tesla's autonomous driving capabilities Not a Tesla App. This version also introduces "Vehicle-to-Home with Powerwall," a new feature enabling deeper integration between Tesla vehicles and home energy systems Not a Tesla App.

Another notable addition in 2026.33.5 is "Automatic Collision Evasion," a new safety feature designed to proactively mitigate potential accidents Not a Tesla App. The update also brings "Full Self-Driving (Supervised)" capabilities, building upon previous FSD Beta versions Not a Tesla App. These software advancements underscore Tesla's ongoing commitment to enhancing vehicle intelligence and utility.

Market Watch

TSLA closed Tuesday, October 6, 2026, at $375.90. As of Wednesday, October 7, 2026, at 12:00 PM ET, the stock is trading at $371.16, reflecting an intra-day decline of 1.26% [TSLA Stock Data].

UBS analyst Joseph Spak has maintained a Buy rating on Tesla and raised his price target to $391 from $385 24/7 Wall St.. Spak emphasized that Tesla's stock performance remains more sentiment-driven than results-driven, with investor expectations for robotaxis, robots, and AI playing a larger role than quarterly profits AOL. For context, TSLA shares are down over 13% year-to-date in 2026 TradingView. Tesla is scheduled to report its third-quarter (Q3) earnings on October 21, with analysts expecting approximately $27.91 billion in revenue and earnings of $0.45 per share TradingView.

Quick Hits

Tesla's Robotaxi app is now available in many more countries, signaling broader deployment efforts Not a Tesla App.
Large numbers of Tesla Cybercabs have been spotted in Houston, hinting at an imminent launch of robotaxi services in the city Not a Tesla App.
Tesla introduced Powershare Home Backup for Model 3 and Model Y, expanding its vehicle-to-grid capabilities Not a Tesla App.
The global Supercharger network has reached 85,000 Superchargers across 9,000 locations worldwide Not a Tesla App.
Elon Musk confirmed that SpaceXAI will be renamed SpaceXSI, dropping 'AI' from the name, aligning with a broader initiative to rename AI technologies Not a Tesla App.
Tesla has rolled out a Halloween Mode with update 2026.38.3, adding seasonal entertainment features Not a Tesla App.
The Model 3 Performance now features a black headliner, while the entire Model 3 lineup will receive a larger screen Tesla Oracle.
All-wheel-drive (AWD) Model 3 and Y variants will see improved 0-60 mph acceleration times Tesla Oracle.
Bitcoin's rally is losing momentum as risk appetite increasingly favors tech stocks, with Bitcoin showing a growing correlation to the S&P 500 LiteFinance.
Tesla is highlighted as a founder-led stock with significant earnings growth potential, driven by Elon Musk's personal vision for AI, robotaxis, and humanoid robotics Simply Wall St.