Tesla’s promising another major self-driving update next month, marking the second big announcement about Full Self-Driving (FSD) technology this year. CEO Elon Musk announced on August 8, 2025, that the new version could arrive by late August if testing goes well, with a public release planned for September.
The update brings significant technical improvements. Tesla’s new FSD model has about 10 times more parameters than before. The company’s also upgraded its video compression technology and trained the AI system on a much larger dataset. These changes specifically target rare driving situations that previous versions struggled with. The enhanced system includes improved sensor performance that helps the vehicle better interpret its driving environment.
Tesla claims the update will substantially reduce how much attention drivers need to pay while using FSD. However, drivers won’t become passengers yet. They’ll still need to take control at complex intersections, during bad weather, and when unusual road events happen. The system still requires human supervision at all times.
Drivers must stay alert and ready to take control despite Tesla’s claims of reduced supervision needs.
Performance data from the FSD community tells a different story. Early FSD v13 updates showed cars could go 510 miles between critical disengagements. But recent updates dropped that number to 431 miles. This means drivers need to take control more often, not less. Despite two major announcements in 2025, users haven’t seen meaningful improvements to the consumer FSD system all year.
Tesla’s shifted much of its development focus to the Austin Robotaxi service instead of improving consumer FSD. The consumer system hasn’t shown significant progress since late 2024, even as the company continues making ambitious promises. Tesla’s approach is supported by collecting data from nine billion miles of real-world driving to continuously refine their autonomous systems. The automotive industry closely watches Tesla’s moves as autonomous driving becomes increasingly important for competitive positioning.
The timing’s important for Tesla’s business. The company reported a 16% drop in automotive revenue during Q2 2025, with shrinking sales in Europe. Self-driving technology remains essential for Tesla’s future growth plans, and consumer FSD represents a high-margin revenue opportunity.
Competition in autonomous driving technology continues growing. Other companies are developing their own systems, putting pressure on Tesla to deliver real improvements. Whether this latest update delivers on its promises or becomes another unfulfilled announcement remains to be seen when it potentially launches next month.