Tesla(US:TSLA) Business Insiderยท2025-10-24 11:37Core Insights - Tesla is focusing on the adoption of its Full Self-Driving (FSD) software, but only about 12% of its current fleet is paying for the service, indicating limited customer acceptance [1][2][4] - Revenue from FSD decreased to $326 million in the third quarter of the previous year, while total revenue for Tesla reached a record $28.1 billion for the same quarter [2] - The company is facing regulatory hurdles in major markets like Europe and China, which are delaying the rollout of FSD technology [11] Financial Performance - Tesla reported a record revenue of $28.1 billion for the third quarter [2] - Revenue from FSD decreased compared to the previous year, attributed to lower one-time revenue recognition due to the release of additional features last year [2] Product and Technology - FSD is marketed as a driver assistance system that requires owner supervision, costing $8,000 outright or $99 per month for a subscription [3] - The latest version of FSD software includes a "Mad Max" mode, which allows for higher speeds and more frequent lane changes [11] Strategic Importance - Increasing FSD subscriptions is critical for Tesla's future, as the company aims to make autonomous vehicles mainstream and significantly boost vehicle sales [4] - Elon Musk's proposed $1 trillion pay package is tied to achieving 10 million FSD subscriptions by 2035 [5] Regulatory and Legal Challenges - Tesla is facing regulatory scrutiny in the US, with a federal investigation launched into FSD after reports of vehicles running red lights [11] - The company has also encountered lawsuits related to FSD and its earlier Autopilot technology, including a significant ruling requiring Tesla to pay $242.5 million in damages for a crash involving Autopilot [12] Future Outlook - Despite setbacks, Musk remains optimistic about the potential of FSD and its impact on transportation, suggesting that the technology will experience rapid adoption [13][14]