Key Points
- Tesla is training a new, more powerful version of its Full Self-Driving (FSD) software.
- CEO Elon Musk says the new model is “10X” bigger and could be released next month.
- FSD technology is a critical part of Tesla’s future growth strategy.
- The announcement comes as Tesla’s core car sales business is struggling. Stock is down more than 23% this year amid falling sales.
Tesla is training a new, more powerful version of its Full Self-Driving (FSD) software that could be ready for public release as soon as next month, CEO Elon Musk said Wednesday. The announcement comes as the company faces significant challenges in its core business of selling cars.
In a post on the social media platform X, Musk said the new FSD model has “10X params,” or ten times the parameters of the previous version. In AI, a larger parameter size typically means the model is bigger, trained on more data, and more capable. He also noted a “big improvement to video,” which is critical for how the car’s cameras interpret the world around them.
This upgrade is a central piece of Musk’s long-term strategy for Tesla. The company is betting its future on autonomy and services like its newly launched robotaxi network in Austin, Texas. Many investors believe these self-driving features are the key to Tesla’s future growth, especially as competition in the EV market heats up.
Right now, however, the company needs a win. Tesla has been struggling with its car sales, reporting a 16% drop in automotive revenue in the second quarter and steep declines in its European sales. The company’s stock has been hit hard this year, down more than 23%, hurt by the sales slump and reputational damage from Musk’s political activities.
This new, more powerful FSD model is a clear signal that Tesla is pushing full-steam ahead on its tech ambitions, even as its current business faces major headwinds.
