Core Insights - The report highlights the synchronized advancement of high-level autonomous driving in China and the US, indicating that the autonomous driving sector is poised to break out of its recent downturn [1][3] - The approval of L3 level autonomous driving vehicles in China marks a significant step towards commercialization, with a cautious and orderly rollout [1] - Tesla's Robotaxi testing without safety drivers reflects rapid evolution in autonomous driving technology, with plans to expand to 8-10 cities by year-end [2] Summary by Sections Autonomous Driving in China - The Ministry of Industry and Information Technology granted conditional mass production approval for L3 autonomous vehicles on December 15, with the first approved models being Changan Deep Blue SL03 and Arcfox Alpha S [1] - This approval signifies a critical advancement in China's autonomous driving commercialization, establishing a closed loop of risk control, testing technology, responsibility, and business models [1] - Regulatory frameworks and the maturity of the industry chain are laying the groundwork for large-scale commercialization, with future expansions in functionality, regions, and vehicle types anticipated [1] Tesla's Robotaxi Initiative - Tesla has initiated Robotaxi testing in Austin without safety drivers, showcasing a more aggressive evolution path compared to previous plans that included safety drivers [2] - The transition from in-person safety monitoring to remote monitoring is expected to significantly reduce driver costs and enhance the profitability visibility of future fleets [2] Investment Strategy in Autonomous Driving Sector - The report suggests that the L3 rollout will drive the entire industry chain from electrification to intelligent competition, benefiting leading automotive companies [3] - Recommended stocks include: - Xpeng Motors: Leading in intelligence among manufacturers, recently obtained L3 license in Guangzhou, with clear Robotaxi product plans and significant valuation upside [3] - Tesla: Short-term benefits from Robotaxi and potential SpaceX listing, while facing pressure on core vehicle sales [3] - Horizon Robotics: Leading in autonomous driving SoC, with strong growth potential driven by mid-to-high level autonomous driving chip deployment [3] - Hesai Technology: Leading in lidar technology with significant growth opportunities in automotive and robotics sectors [3] - Pony.ai: Long-term focus on Robotaxi leadership, with validated single-vehicle economic model in Guangzhou [3]