Tesla Says New “FSD” Model Coming Soon — But the Tech Still Isn’t Fully Autonomous

Tesla is training a new version of its Full Self-Driving (FSD) software, according to a social media update from CEO Elon Musk this week. He says the upcoming model will feature major AI and video upgrades, including a ~10x increase in parameters and improved video compression. If testing goes well, Musk claims it could be released publicly by the end of next month.

But while the update promises technical improvements, experts say the system still doesn’t match what most people understand as “self-driving.” Tesla’s FSD remains a driver-assist feature, not a fully autonomous system. Drivers must stay alert, keep their hands on the wheel, and be ready to take over at any moment.

What the Upgrade Actually Means

Musk’s reference to “10X parameters” signals that the next FSD version will use a much larger AI model, trained on more data. In AI development, more parameters can mean better pattern recognition and decision-making. Tesla also claims to have reduced video compression loss, which could improve how its cameras process and interpret surroundings.

Tesla’s marketing has long blurred the line between driver assistance and full autonomy. In past regulatory filings, the company noted that its FSD features “do not make the vehicle autonomous,” but this message is often missing from public-facing statements by Musk and Tesla’s promotional materials.

Autonomy Push Amid Sales Declines

The announcement comes at a time when Tesla’s core vehicle business is struggling. In Q2 2025, Tesla reported a 16% drop in automotive revenue and declining sales in key markets like Europe. The company’s stock has fallen over 23% this year, with analysts pointing to both operational challenges and reputational damage surrounding Musk.

Tesla’s move toward AI-powered driving has become central to its business strategy. Earlier this year, the company launched a limited robotaxi program in Austin, Texas—but so far, few details have been released about how it works, who can use it, or how safe it is.

While Tesla bulls continue to bet on autonomy as the company's future, the software’s track record has raised questions. U.S. regulators have opened multiple investigations into Autopilot and FSD following collisions, including incidents where Teslas hit parked emergency vehicles.