Elon Musk Says Upcoming FSD Update Will Reduce Need For Driver Attention ‘Substantially’

Tesla Inc. CEO Elon Musk said on Friday that the upcoming software update of the company’s Full Self-Driving (Supervised) driver assistance system will “substantially” reduce the need for driver attention while not enabling fully autonomous driving.

The update, expected to launch next month, will still require drivers to pay attention at complex intersections, heavy weather, or unusual events, Musk said in a post on X. The Tesla CEO did not elaborate on what constitutes “unusual events.” “The FSD software update next month will be a major step-change improvement for rare conditions,” Musk said in another post earlier.

While the upcoming update will not make the vehicle entirely autonomous, “there are some additional breakthroughs in Tesla AI that will make the car feel eerily human,” Musk said, reiterating hopes that the technology will eventually equal a human driver’s abilities.

Musk is currently attempting a strategic shift at Tesla, veering the company into AI and robotics with efforts into vehicle autonomy and humanoid robots beyond vehicle manufacturing.

Tesla’s second-quarter automotive segment revenue declined by 16% to $16.66 billion, while total revenue of $22.50 billion exceeded analyst estimates despite being lower than what was reported in the second quarter (Q2) 2024. Tesla reported vehicle deliveries of 384,122 units in Q2, marking a 13.5% year-over-year decline and the second consecutive quarter of declining deliveries.

The company’s quarterly adjusted earnings per share came in at $0.40, down from $0.52 a year ago.

Musk also warned of a “few rough quarters” ahead. "We probably could have a few rough quarters," Musk said. "I'm not saying we will, but we could – you know, Q4, Q1, maybe Q2, but once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I think I'd be surprised if Tesla's economics are not very compelling."

Reuters reported earlier this week that shareholders have sued Tesla and Musk, alleging securities fraud for concealing the risk associated with the company’s self-driving vehicles, including robotaxis. Shareholders accused the electric vehicle maker of overstating the effectiveness of its autonomous driving technology, inflating its business prospects, and stock price.

TSLA stock is down by 20% this year but up by over 62% over the past 12 months.

Read also: US Regulator Opens Probe Into Over 137,000 Kia Vehicles

For updates and corrections, email newsroom[at]stocktwits[dot]com.