A judge found Joshua Mebane competent to stand trial Monday in a mental observation hearing.
Mebane, who announced plans pursue an insanity defense in February, will continue with that defense.
The 17-year-old is charged with first-degree murder while armed for killing a D.C. taxi driver.
Police found 44-year-old Quadar Muhammad on November 7, 2012, in a burning Lincoln taxi cab on the 1400 block of Brentwood Parkway Northeast. Cause of death was later determined to be a gunshot wound to the head.
Mebane is scheduled for a status hearing before Judge Jennifer Anderson on January 23.
