Tesla Has Quietly Changed The Meaning Of FSD Following Elon Musk's $1 Trillion Pay Package Announcement

Tesla Inc. TSLA has quietly changed the fine print associated with its FSD or Full Self-Driving technology following the announcement of CEO Elon Musk's $1 trillion compensation package.

Tesla Changes Description Of Autonomous Driving Capabilities

Tesla has revised the description of the FSD package it offers to customers when ordering a vehicle on the company's official website as of Sunday, which now says that the FSD system does not make the vehicle autonomous.

Benzinga reached out to Tesla for comment on the story and is awaiting a response.

"Currently enabled features require active driver supervision and do not make the vehicle autonomous," the description states, adding that the availability of the features depends upon regulatory approval as well as development of the technology, "which may take longer in some jurisdictions."

Source: Tesla

Elon Musk's Ambitious Targets Laid Out In New Pay Package

The change follows Tesla unveiling a new pay package for Musk — which comes after a previously revealed $29 billion pay package — that could see him gain over $1 trillion in stock options provided that he can meet ambitious targets laid out by the board of directors, like helping the EV giant reach an $8.5 trillion market capitalization.

Interestingly, one of the milestones or conditions for the pay package also includes 10 million active FSD subscriptions for Tesla and 1 million Tesla robotaxis on the road. The pay package has also outlined what FSD means.

"FSD" means an advanced driving system, regardless of the marketing name used, that is capable of performing transportation tasks that provide autonomous or similar functionality under specified driving conditions,” the SEC filing of the pay package says.

FSD's Legal Challenges

The FSD system has been under legal scrutiny following a California judge certifying a class action lawsuit against Tesla for what the plaintiffs call "misleading claims" regarding the system's capabilities.

Tesla is also facing another lawsuit filed by investors, who have expressed concern over the system's effectiveness and safety following incidents of possible traffic violations during June's Robotaxi launch event in Texas.

Tesla Expands Robotaxi

Meanwhile, Tesla has expanded its Robotaxi operations in Austin, which now drives on the highway under the presence of an onboard safety operator in the driver's seat.

Tesla is also offering its ride-hailing services in California as the company officially rolled out its Robotaxi app on the Apple Inc. AAPL App Store, which has since been among the most-downloaded applications on the platform.

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