Tesla(US:TSLA) Hua Yuan Zheng Quan·2025-09-28 15:24Investment Rating - The report maintains a "Positive" investment rating for the automotive industry [1] Core Insights - The upcoming release of Tesla's FSD V14 is expected to significantly enhance the driving experience, with capabilities described as "almost sentient" [4][7] - The FSD V14 update is anticipated to feature a tenfold increase in model parameters and substantial improvements in video compression technology, which may lead to performance enhancements beyond market expectations [7][30] - Tesla's FSD system has shown remarkable improvements in key metrics, with urban takeover mileage increasing from an average of approximately 100 miles per instance in FSD V12 to over 200 miles in FSD V13 [18][19] Summary by Sections 1. Tesla FSD V14 Expected Release - Tesla CEO Elon Musk announced that FSD V14.0 is expected to be released next week, followed by versions 14.1 and 14.2, with the latter promising unprecedented intelligent driving experiences [4][7] - The FSD V14 update is structured into three iterations: testing, optimization, and official release, with significant enhancements in model parameters and environmental perception capabilities [7][30] 1.1 Current FSD System Performance - The FSD system's capabilities are improving significantly, with a competitive data loop system established for efficient model training and deployment [9] - As of Q2 2025, Tesla's vehicles equipped with FSD have accumulated over 4.5 billion miles of driving, a substantial increase from 1.6 billion miles in Q2 2024 [9][11] 1.2 Expansion of Model Parameters - The report highlights a shift towards an end-to-end architecture and exploration of world models, aiming to enhance the model's understanding and generalization capabilities [26][30] - The introduction of SDF technology is expected to refine the vehicle's perception of the physical world, enhancing both navigation and parking functionalities [31][34] Investment Analysis Recommendations - Investors are advised to monitor domestic new energy vehicle manufacturers with advanced autonomous driving technologies, such as XPeng Motors and Li Auto [4] - Attention should also be given to upstream component manufacturers benefiting from advancements in autonomous driving technology, including SoC manufacturers and domain control suppliers [4]