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Tesla’s Journey Toward Full Self-Driving: Progress and Challenges
For nearly a decade, Elon Musk has been assuring investors that Tesla vehicles are on the cusp of transforming into robotaxis, promising that a significant software update would enable fully autonomous driving across the nation. However, that vision has yet to materialize.
Currently, Tesla offers a comprehensive but only partially automated driving system, marketed in the U.S. as Full Self-Driving (FSD). This term has recently been modified in China to “intelligent assisted driving.”
The FSD system utilizes a combination of cameras and advanced software to facilitate features such as automatic navigation on highways and urban roads, as well as adaptive responses to traffic lights and stop signs.
According to Tesla’s owner manuals, users are cautioned that FSD is a “hands-on feature,” emphasizing the necessity of remaining attentive to the road. The manuals stress, “Keep your hands on the steering wheel at all times, be mindful of road conditions and surrounding traffic.” Despite these warnings, many Tesla owners choose to engage with the system without hands-on supervision.
Tesla’s automated driving capabilities excite its passionate user base but also raise significant concerns regarding public safety. Incidents involving detrimental and fatal accidents involving the standard Autopilot and FSD systems have sparked considerable debate regarding their safety and reliability.
Guy Mangiamele, a professional test driver with AMCI Testing, recently highlighted the capabilities of Tesla’s FSD while driving through Los Angeles. He remarked that while the system performs many tasks “amazingly well,” there are critical moments where it could lead to serious harm.
With increasing concerns surrounding safety and reliability, Tesla faces mounting pressure to enhance its technology and fulfill Musk’s long-standing promises.
The CEO of Tesla, who also stands as the world’s wealthiest individual, has been a prominent supporter of political efforts to streamline government efficiency and reduce workforce size, particularly under the Trump administration. Reports suggest that initiatives associated with the Department of Government Efficiency (DOGE) are linked to extensive layoffs affecting various federal agencies.
Public sentiment has shifted against Tesla in light of Musk’s political affiliations and statements, with many expressing their opposition through protests, boycotts, and even acts of vandalism. Recent data indicates a decline in Tesla’s customer base, as potential buyers reconsider their choices and current owners are trading in their electric vehicles at an increased rate.
In the first quarter of 2025, Tesla’s stock experienced a significant drop of 36%, marking its steepest quarterly decline since 2022. Additionally, the company reported vehicle deliveries totaling 336,681, a 13% decrease year-on-year.
Looking ahead, upcoming product launches, including a reveal of a robotaxi service in Austin, Texas, may bolster investor confidence and help rehabilitate Tesla’s share price, according to analysts from Piper Sandler.
During the latest earnings report, Musk assured stakeholders that the long-anticipated driverless ride-hailing service would commence in Austin by June.
To evaluate Tesla’s FSD technology’s readiness for widespread deployment, CNBC undertook a thorough examination, including rides with Tesla owners utilizing the FSD system and consultations with automotive safety experts.
Auto-enthusiast Chris Lee, who showcases Tesla content on his YouTube channel, acknowledged that while the FSD system has made remarkable strides in recent years, it still has improvements to achieve before reaching its full potential.
Experts like Sam Abuelsamid, Vice President of Market Research at Telemetry, express skepticism regarding the FSD’s readiness for unsupervised use. He indicated that despite some successful operational scenarios, the technology has not demonstrated consistent reliability, particularly under challenging conditions.
Watch the video to learn more about the evolution of Tesla’s Full Self-Driving (Supervised) and whether it will be robotaxi-ready this June.
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