Tesla's Plans for 'Unsupervised FSD' and Robotaxis May Face Bureaucratic Hurdles.
During the Tesla robotaxi presentation event last week, CEO Elon Musk expressed his expectation that the company will launch a version of FSD that operates in a "unsupervised" manner.
At last week's robotaxi presentation event, Elon Musk, CEO of Tesla, revealed his expectation to launch an "unsupervised" version of the advanced driver assistance system, known as FSD, in Texas and California by 2025, applicable to certain models of the Model 3 and Model Y vehicles. Additionally, he mentioned that the production of these robotaxis, which will not have a steering wheel or pedals, would begin between 2026 and 2027. While skepticism surrounds Musk's ability to meet these timelines, the introduction of an unsupervised FSD and the manufacturing of robotaxis without human controls raises regulatory concerns.
The term "FSD" translates to “Full Self-Driving,” although the technology has not yet achieved full autonomy. Currently, it can perform automated driving tasks in urban environments and on highways. In response to accusations of misleading advertising, the company changed the designation from "FSD Beta" to "Supervised FSD" last April, reflecting that a human driver must remain attentive and ready to intervene when necessary.
Two possible interpretations of "unsupervised FSD" can be considered: one could be a Level 4 fully autonomous system, and the other could be a Level 3 system that allows the driver to disengage momentarily, similar to Mercedes' Drive Pilot or the system being developed by General Motors. The difference lies in that Level 3 requires a driver to intervene when the system requests it, whereas Level 4 operates autonomously under specific conditions.
Regarding regulatory implications, Musk anticipated a launch of unsupervised FSD in California and Texas next year, although he didn't specify whether it would be an over-the-air update or if additional costs would be required. In Texas, regulations allow for the implementation of autonomous vehicles with or without a driver, as long as they comply with traffic laws and have the appropriate equipment. However, in 2025, the state legislature could consider proposals that would require autonomous vehicle companies to notify the Department of Motor Vehicles when no driver is present.
In California, the process is more complicated, as several permits are required. Tesla has had a driver-test permit since 2015 but has not applied for approval to conduct driverless tests or for commercial deployment. If Tesla plans to launch a Level 3 system, it would only need a deployment permit. In contrast, if a Level 4 system similar to Waymo's is proposed, permits would be required for both driverless testing and commercial deployment.
Producing robotaxis that omit the steering wheel and pedals would also face challenges. For Tesla to mass-produce these vehicles, a waiver from federal vehicle safety standards would be necessary. So far, the NHTSA has only granted a similar waiver to Nuro for its low-speed autonomous delivery vehicles.
The complicated regulatory landscape and Musk's lack of clarity on how Tesla plans to address these regulations, along with details about the advancement of the FSD technology and the company's market strategy, raised concerns among investors, leading to a nearly 10% drop in Tesla's stock value following the event.
