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Welcome to The Downshift, or TDS for short, The Drive’s morning news roundup bringing you the biggest automotive headlines from around the world.

The Downshift quickly recaps the news, with links to full stories for those seeking more info. Hope you had a great weekend—here’s your bulletin for Monday, June 1, 2026.

BYD has announced it will assume all financial responsibility for any crash that happens during proper use of its City Navigation autonomous driving system within one year of a vehicle’s delivery, or update to its latest “God’s Eye” software. The year-long limitation means this doesn’t solve one of the burning issues around autonomous driving, though it is a noteworthy development from China’s biggest automaker. [CleanTechnica]

There is concern that new legislation developing in the House prohibiting automakers from selling cars in the U.S. if they have “any direct or indirect equity interest by a foreign-adversary government” could ban Mercedes-Benz from the market. Chinese firms BAIC and Geely own a combined 19.67% of the company, and, as understood, the bill sets the threshold for “control” by a “foreign adversary” at 15% ownership. [CNBC]

7⃣ The next-generation BMW X7 will have a more wagon-like profile, differentiating it from BMW’s typical SUVs as well as its competitors, according to retailers briefed on the new model. [Automotive News]

There could be as few as 800 examples of the manual BMW M3 CS Handschalter earmarked for the U.S. market, with BMW M Certified dealers receiving two cars and non-M dealers only one, according to a BMWBlog report. Additionally, markups supposedly range from a few grand to $25,000. [BMWBlog]

There’s a class-action lawsuit brewing for owners of 2023-2025 Kia Tellurides in New York and Pennsylvania alleging that Kia was aware that the SUV’s 12.3-inch digital instrument cluster could fail. [Car Complaints]

Genesis’ Le Mans Hypercars will wear new orange liveries for their 24 Hours of Le Mans debut later this month. [Racer]

Weekend Race Results:

• WRC Rally Japan: Elfyn Evans won for Toyota
• NASCAR Craftsman Truck Series at Nashville: Layne Riggs won for Front Row Motorsports
• NASCAR O’Reilly Auto Parts Series at Nashville: Justin Allgaier won for JR Motorsports
• MotoGP Italian Grand Prix: Marco Bezzecchi won for Aprilia
• IndyCar Detroit Grand Prix: Alex Palou won for Chip Ganassi Racing
• IMSA Detroit Grand Prix: Jack Aitken and Earl Bamber won for Cadillac
• NASCAR Cup Series at Nashville: Denny Hamlin won for Joe Gibbs Racing

Got a tip or feedback for TDS? Reach out to tips@thedrive.com

Tesla has officially altered how European buyers can access its highest tier of driver assistance systems. The American electric vehicle manufacturer stopped offering Full Self-Driving, often called FSD, as a permanent, one-time purchase across Europe. Moving forward, anyone who wants to use these software features on new electric cars will have to pay a monthly fee.

Previously, Tesla allowed buyers in Europe to pay an upfront cost of €7,500 or £6,800 in the United Kingdom to secure lifetime access to what the company marketed as Full Self-Driving Capability. That permanent buying option is gone. In its place, the automaker now requires a recurring monthly subscription fee of €99 or £99 to turn on the software.

Tesla Germany

Along with this shift, Tesla also eliminated the mid-tier Enhanced Autopilot package. This older option used to cost €3,800 or £3,400 as a one-time purchase. For that price, it gave drivers lifetime access to automatic lane changes, automated overtaking, highway navigation, and a smartphone-controlled summoning tool. Now, buyers can no longer purchase this specific mid-tier bundle at all.

Despite the updates to the paid packages, the most basic driver-assist features remain unchanged. Tesla includes its standard Autopilot system for free on all vehicles. This complimentary package keeps the car centered within its lane, manages steering, and controls acceleration and braking.

The €99 monthly payment is meant to unlock the more advanced FSD system, which allows the vehicle to travel from one point to another under human supervision. However, the regulatory environment in Europe creates a unique challenge for local buyers. Right now, government authorities have approved the actual use of this complete software suite in only two European nations: the Netherlands and Lithuania.

TESLA UK

Because the continent lacks uniform approval for this technology, Tesla owners in different countries face very different realities. On its website for the Netherlands, where the system is legally live, Tesla states that its electric cars can drive almost anywhere with minimal intervention. In sharp contrast, the company website for the United Kingdom has a clear warning that the system is not yet available and depends entirely on future development and government regulatory clearance.

This leaves many European buyers in a position where they must pay a monthly subscription for software that cannot legally perform its main tasks in their home countries. Tesla implemented an identical strategy in the United States, where it removed the $8,000 upfront FSD purchase option in favor of a $99 monthly fee.

From a purely financial perspective, the monthly payment system has both benefits and drawbacks for the average consumer. If a driver pays €99 every month, it takes slightly more than six years of continuous payments to reach the €7,500 that the software used to cost upfront. For owners who trade in their electric cars every few years, the subscription model could actually save them money.

TESLA Netherlands

A monthly plan adds some much-needed flexibility – owners can choose to activate the service for a single month during a long road trip and then cancel it when they return to daily city commuting. This avoids the risk of paying a massive lump sum for software that stays tied to a single vehicle chassis.

Many long-term Tesla owners paid thousands of euros years ago based on promises that their vehicles would eventually achieve full autonomy. However, company Chief Executive Officer Elon Musk confirmed during a recent financial call that older vehicles using previous-generation Hardware 3 technology will not be capable of true, unmonitored self-driving. To solve this problem, the carmaker will have to build specialized micro-factories to upgrade these older electric cars with newer hardware components.

Source

The Beijing Auto Show is always full of surprises, but this year, a giant took the stage. XPeng has officially pulled the covers off its newest flagship SUV, the XPeng GX. This big vehicle is designed to be the best of the best for the Chinese company. With a starting price of RMB 399,800, which is about £42,200, it is not a cheap family runaround, but it offers a lot of features that usually cost much more in other electric cars. This six-seater has more computer power than many professional workstations. XPeng wants to prove that its cars can be as luxurious and advanced as the top-shelf offerings from famous luxury brands from Europe.

When you first look at the XPeng GX from a distance, you might think you are seeing a Range Rover. It has a similar boxy, strong look that many luxury buyers love. But the GX is actually longer than the British classic. It measures 207.3 inches from front to back. The wheelbase is a roomy 122.6 inches. But even though it is a giant SUV, it moves through the air very easily. It has a drag coefficient of 0.255 – better than many small, sleek cars. It sits on large 22-inch wheels that help it stand tall and look expensive.

Inside the car, the space is the real star. Most SUVs with three rows of seats feel like a cardboard box in the very back. The XPeng GX uses a layout with two seats in each of the three rows. The doors close themselves softly, so you never have to worry about slamming them. XPeng says this is a car built for families and it isn’t wrong. The trunk is big enough to hold six large suitcases, even when every seat is full. There is a fridge that stays quiet while it keeps your drinks cold. The front passenger seat can even lean back 180 degrees for a nap. If you want some privacy, the glass can dim itself using AI technology.

There are two versions of the new GX available – the first is a pure electric option. This model uses an 800V system that allows for very fast charging. XPeng calls this 5C supercharging. On a full charge, this version can travel 466 miles. It uses two electric motors for all-wheel drive to make sure it has plenty of grip on the road. This makes it one of the long-distance leaders among modern EVs.

The second version is an extended-range EV. This model can go 267 miles using just its battery. It also has a small gas engine that acts like a generator, and when you use both, the total range jumps to 985 miles. That is a serious distance for any vehicle. You could drive for days without needing to stop for fuel or a charge. Like the pure electric version, this one also comes with all-wheel drive as standard equipment.

XPeng calls the GX its first “robotaxi-ready” car – it has the hardware to drive itself in the future. It uses four special AI chips designed by XPeng. These chips are very powerful and can think much faster than a human. To help the car steer, XPeng worked with Bosch to build a steer-by-wire system. This means there is no metal rod connecting the steering wheel to the tires. Instead, the car uses wires and computers to tell the wheels which way to turn. This allows the AI to steer faster and with more precision.

Safety is another area where XPeng is showing off its strengths. The company says the XPeng GX has “aviation-grade” safety – it has backup systems for everything, just like a commercial airplane. If one system for steering or braking fails, there are five more layers of backup to keep you safe. The car can also stop itself automatically if it sees a crash coming. It can do this at speeds up to 93 mph. It even works on ice and snow, which is usually very hard for computers to handle.

But this is not the first time XPeng has tried to sell a luxury car. They tried it once before with the G9, but it did not go very well. Now, the GX has to fight against other popular Chinese EVs like the Li Auto L9 and the NIO ES8. Pretty much anywhere in the world, a car with all these features for £42,200 would be an instant hit. But in China, the competition is so tough that some people think the price is a bit high.

If you want to spend a little more, you can get a special paint job called “Kunlun Cloud Realm.” This paint is put on in 15 different layers, with each layer 230 micrometers thick. This makes the car look like it was painted by hand by an artist. It gives the GX a lustrous, deep look that you usually only see on cars that cost in excess of £150,000. XPeng is trying very hard to make sure this SUV feels like a true luxury product from top to bottom.

XPeng is changing from a car company into an AI mobility company. They are already making robots, eVTOL aircraft and are working on robot taxis. The XPeng GX is a big part of this new plan. If the self-driving technology works as well as they promise, the high price might be worth it. People might be willing to pay more for a car that can handle the boring parts of driving for them. For now, the cars are already arriving at stores in China.