A Silent, but Significant, Change

In a subtle yet profoundly significant shift, Tesla has recently updated the language on its website and in its legal filings to redefine the capabilities of its "Full Self-Driving" (FSD) system. The change was reportedly made around the same time as the announcement of the proposed $1 trillion compensation package for Elon Musk. The updated disclaimer now explicitly states: "Currently enabled features require active driver supervision and do not make the vehicle autonomous". This is a stark contrast to past marketing and statements from the company, which often promised unsupervised, Level 4-5 autonomy.   

The New Reality of "Supervised" Autonomy

The new definition of FSD, as found in Tesla's recent Securities and Exchange Commission (SEC) filings, is an "advanced driving system... that is capable of performing transportation tasks that provide autonomous or similar functionality under specified driving conditions". This vague and expansive language serves a critical purpose. By broadening the definition, Tesla can now count the existing, supervised FSD system as progress toward one of the key milestones in Musk's new compensation plan: achieving 10 million active FSD subscriptions. This means the company is not necessarily required to deliver a truly unsupervised, "sleep-in-your-car" system to meet the target, which makes the milestone significantly more attainable.   

Legal and Regulatory Crosshairs

The FSD language change is occurring within a larger context of intense legal and regulatory scrutiny. A California judge recently certified a class-action lawsuit against Tesla, which alleges that the company has been misleading customers about its self-driving capabilities for years. The judge found that the company's unique marketing approach, which relies on its website and social media rather than mass advertising, still creates a common legal basis for the plaintiffs' claims. The California Department of Motor Vehicles (DMV) has also publicly argued in a court hearing that Tesla has "falsely advertised" its technology, further adding to the regulatory pressure.   

For years, the dissonance between Tesla's marketing and the reality of FSD's capabilities has created a "bait-and-switch" narrative for many early FSD buyers. These customers paid thousands of dollars for a feature they were told would eventually become truly autonomous, only to see the company now walk back that promise in its official documents. The legal and technical disclaimers, while protecting Tesla, confirm that the original vision of FSD is for now "aspirational" and not a guaranteed feature. This could lead to a significant trust deficit among the core customer base that has been waiting for years for true autonomy.   

The Evolving Owner's Experience

Despite the legal and marketing complexities, the FSD Beta continues to evolve through over-the-air software updates, with the latest versions showing marked improvements. The FSD Beta v12.5 software is based on an "end-to-end" neural network architecture, which processes visual data from the car's cameras and directly translates it into vehicle actions. Owners have praised the system for its "smoother lane changes, better roundabout handling, and more 'human-like' decisions". The system now automatically lowers fan speed during phone calls, and new entertainment options like Castle Doombad Classic and Vampire Survivors have been added.   

However, frustrations persist. Owners still report issues with "inconsistent merging behavior" and limitations on rural roads or in poor lighting conditions. The system's "Vision-Based Attention Monitoring" requires the driver to remain "fully attentive" with hands on the wheel, and the car will display escalating warnings if the driver becomes inattentive. This hands-on requirement is the central point of friction for owners who bought the feature with the expectation of a future autonomous experience. While the software is improving, the company's official stance now solidifies that FSD is a supervised driver assistance system, not a true self-driving car.   

Conclusion: The Trust Deficit

The redefinition of FSD is a multi-layered strategic maneuver. It simultaneously acts as a legal defense against false advertising claims and as a financial enabler for the CEO's compensation. While this may protect the company from a legal standpoint and help achieve internal goals, it risks eroding the trust of its most dedicated customers. The widening gap between the company's historical marketing promises and its new, cautious legal language highlights a significant challenge. Tesla is no longer a simple car company but an entity at the center of a high-stakes debate about technology, regulation, and consumer expectations. Its ability to manage this trust deficit will be as critical to its future success as its technical prowess.