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Tesla is preparing to unveil a completely revamped version of its Full Self-Driving (FSD) system, which CEO Elon Musk says could be ready as early as September. According to Musk, the new system will have ten times more parameters than the current version and will feature significant improvements in real-time video processing.

A New Generation of FSD: Smarter AI and Enhanced Visual Interpretation
Posting on X, Musk stated that Tesla is currently training the latest FSD version, which represents a major technological leap. “We're working with 10X the parameters and dramatically improved video compression. If testing goes well, we might release it publicly by the end of next month,” he said.
This means the system will be more capable of evaluating road conditions and making decisions in complex traffic situations. Tesla emphasizes that improving video comprehension is critical for achieving true autonomy—especially in dense urban areas, construction zones, and visually complex environments.

Autonomy at the Heart of Tesla’s Future
Tesla has long bet that autonomous driving technology will drive its future growth. Although the company has recently faced a decline in demand and revenue—particularly in Europe, where vehicle registrations are falling—Musk insists that autonomy remains the key to Tesla’s transformation.
Earlier this year, Tesla launched its first robotaxi service in Austin, Texas, signaling its ambition to expand far beyond car sales.
“Tesla bulls view autonomy as the most important long-term value driver for the company,” said auto industry analyst Melissa Chan. According to her, even if demand for EVs declines, new business models in mobility services could offset the drop.

Fierce Competition and Business Pressure
Tesla is not alone in the race. Chinese automakers like BYD and XPeng are heavily investing in autonomous driving software, while traditional global carmakers are also accelerating their AI integration efforts.
At the same time, Tesla’s core business is under pressure. In Q2 2025, the company’s revenue dropped 16% year-over-year, and sales in Europe plummeted. Tesla’s stock is down over 23% since the beginning of the year, raising concerns about its long-term stability. Reputational issues, including tensions between Musk and the White House, have added to the challenges.
Some analysts believe the new FSD model could be a turning point—but for now, it's still in the testing phase, with no confirmed release date.

Will the System Deliver?
Although Musk is optimistic that the new FSD model could launch next month, widespread rollout depends on successful testing and regulatory approval, particularly in international markets.
For now, Tesla is banking on its progress in AI and the next-gen FSD to shift the tide in its favor. However, the road to full autonomy remains complex—and far from fully autonomous.

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