Tesla’s Full Self-Driving software is struggling to gain traction with only 12% of owners paying for the service. Third-quarter FSD revenue reportedly declined as regulatory hurdles and safety concerns complicate Elon Musk’s autonomous vehicle ambitions.
Tesla’s Autonomous Ambitions Face Customer Resistance
Tesla is encountering significant challenges in convincing vehicle owners to adopt its premium Full Self-Driving (FSD) software, with recent reports indicating declining revenue and limited customer uptake for the technology that CEO Elon Musk has positioned as central to the company’s future. According to the company’s third-quarter earnings report, FSD revenue decreased compared to the same period last year, when Tesla reportedly generated $326 million from the driver-assistance system.