Elon Musk set his sights on a future where Tesla’s vehicles drive themselves, positioning Full Self-Driving (FSD) as the cornerstone of the company’s long-term strategy. However, despite Musk’s bold vision, customer adoption remains low. During Tesla’s latest earnings call, CFO Vaibhav Taneja revealed that only about 12% of Tesla’s current vehicle fleet has subscribed to the FSD service, highlighting a significant gap between ambition and reality. While Tesla reported record quarterly revenue of $28.1 billion, FSD revenue actually declined compared to the same period last year, when it generated $326 million. This drop is attributed to a one-time boost in FSD sales in 2023, when Tesla introduced new features like Actually Smart Summon and a Cybertruck-specific FSD version, which led to a surge in upfront purchases. FSD, priced at $8,000 outright or $99 per month, is marketed as a driver-assistance system requiring constant human oversight. Yet, its rollout is hindered by regulatory roadblocks in key markets. In Europe and China, Tesla is still awaiting approval to launch FSD, with the company stating that its entry into these regions remains “pending regulatory approval.” In the U.S., the technology has drawn scrutiny from federal regulators, who recently launched an investigation into reports of Tesla vehicles with FSD running red lights and making unsafe lane changes. The company has also faced multiple lawsuits, including a major $242.5 million verdict in August over a fatal 2019 crash involving a car using Autopilot, a predecessor to FSD. Tesla has since filed a motion to overturn the decision. Despite these challenges, Musk remains undeterred. He reiterated his belief that FSD will revolutionize transportation, even predicting a “shock wave” effect once the system becomes fully autonomous. The push for FSD is not just strategic for Tesla—it’s personal. A key component of Musk’s proposed $1 trillion pay package, set for a shareholder vote next month, is the goal of reaching 10 million FSD subscribers by 2035. This target underscores the deep link between Musk’s personal compensation and the success of Tesla’s self-driving ambitions. Tesla recently released FSD version 14, which includes a new “Mad Max” mode that enables higher speeds and more aggressive lane changes. While this may appeal to some users, it also raises safety concerns. The company continues to face criticism over the marketing and deployment of its driver-assist technologies, with experts warning that overreliance on FSD could lead to accidents. As regulatory scrutiny intensifies and public trust wavers, Tesla’s path to full autonomy remains uncertain. The company’s future may depend on its ability to balance innovation with safety, transparency, and regulatory compliance. In the industry, analysts view the FSD challenge as a critical test of Tesla’s long-term viability. “Tesla is betting its future on a technology that’s still not ready for prime time,” said one mobility expert. “The gap between Musk’s vision and real-world performance is widening.” While Tesla remains a leader in electric vehicles, its self-driving ambitions are now under greater scrutiny than ever.