Tesla Robotaxi Revolution: Major FSD Update Teased Ahead of Q3 Launch

On: Monday, July 21, 2025 12:16 PM
Tesla Robotaxi

Tesla robotaxi dream is finally coming to life. Elon Musk recently shared a surprising post on X (formerly Twitter), revealing that Tesla’s Full Self-Driving (FSD) software is getting a major update soon.

This upgrade is possible thanks to two key improvements taken directly from Tesla’s robotaxi fleet in Austin, which are now being added to the version used by regular drivers.

Major FSD Upgrade Coming

Tesla is incorporating technology from its internal Austin robotaxi program into its mainstream FSD build, according to Musk. This will make a “step change improvement” in capabilities of the system, he says. Although he did not go into details, Tesla insiders believe these improvements could provide for slicker decision-making, humanlike driving behaviour and better navigation in demanding urban surroundings.

It is the first big FSD development announcement in months. The company last updated FSD software version 13 and has since been testing more capable software in the background on its fleet of robotaxi — Tesla has developed cars that can run independently, without anyone driving them.

Will Everyone Have Access to It?

Not quite. Early indications are that the update will only be available for cars with the Tesla’s latest Hardware 4.0 (AI4) computer. The older AI3 vehicles are running FSD v12.6, which came out in late 2024, and may not have the support right out of the gate for these new features.

Musk has hinted that the enhancements are aimed to be released in Q3 2025 (July–September 2025). But he also added that there needs to be further testing to ensure the update does not cause issues in other areas of the system.

What Does the Tesla Robotaxi Dream Really Mean?

If this new FSD update truly delivers what Elon Musk is promising, it could bring us closer to a future where cars drive themselves—no human driver needed. Tesla’s vision is to let owners send their cars out like a taxi when they are not using them, allowing the vehicle to earn money on its own. This could completely change the way we think about owning a car. Instead of just sitting idle, your car could actually become a source of income.

Global Rollout Still Pending

Tesla robotaxi rollout progress by country Despite the U.S. advancements, Tesla’s robotaxi rollout across Europe and China is at a standstill as we await regulatory approvals. Tesla is “waiting for approval” in both places, with Musk saying he hopes they will get clearance “soon.”

The Bottom Line: With Musk confirming that Tesla robotaxi tech is making its way to consumer FSD, this might be the year Tesla finally rounds the corner on autonomous driving — getting it closer than ever before to cars that truly drive themselves.

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