It’s presumptuous of me to write an article on Tesla’s FSD Beta v9 considering the sad fact that my Tesla Model 3 doesn’t have it. I’ve had the urge to do it anyway, but what could I say? Well, I’ve watched videos and read articles written by people who have it, and now I have something to say that no one has said. I’m going to compare Tesla to Mercedes Benz.
There are numerous people who now have access to the FSD v9 Beta, and many of them have now posted videos online to describe their experience. We take a look at some of those most interesting videos below.
All these reviewers mention that v9 is much smoother and more human-like in its driving leading to fewer disengagements. You’ll note that even though v9 is a better driver, it’s not yet a human-level driver. There’s no such thing as disengagement when a human is driving.
AI Addict took his Tesla with v9 down Lombard St. in San Francisco and here's how it did:
For those of you not familiar with San Francisco, Lombard St is extremely curvy and hilly. It’s also very narrow. It’s a one-way street, so you have to drive downhill. The last time I drove down that hill, I scraped my car on a cement curb. AI addict went down the street twice, and he had to take over both times. Clearly, Lombard St is an edge case that the neural network hasn’t mastered yet.
Here’s a v9 video in San Francisco that doesn’t go down Lombard St, but that does still need some human interventions.
Here’s a video by Dirty Tesla in downtown Ann Arbor. He did need to intervene a number of times.
So, basically, v9 is much better than v8, but it’s still not able to drive as well as the average human driver. So, what else is new? Here’s the kicker.
There’s an article in Engadget that describes the author's test track experience in a Mercedes Benz with level 3 self-driving. Benz is planning to release level 3 within a year.
Below you have the six levels of vehicle autonomy as defined by the SAE International group, which defined the standards the US goverment now uses.
Here’s the thing about the Mercedes Benz version of level three. It’s geofenced to limited access highways, and it’s velocity fenced to speeds of less than 60 kilometers/hour which translates to speeds of less than 37.2 miles an hour. So if you buy one of these cars for the level 3 self-driving feature, you’ll be able to use it only on limited-access highways during traffic jams. According to the video, you’ll be able to watch movies, play video games, and send texts while in traffic jams, that is unless the police see you doing those things. You’ll be able to keep your hands off the steering wheel, but you still have to be ready to take over instantly if the car decides it doesn’t know what to do. If you fall asleep or raise a newspaper high enough so the interior camera doesn’t know if you’re awake and alert, the level 3 self-driving feature will stop working.
So now, let’s get back to Tesla. Although I don’t have FSD Beta v9, I do have Navigate on Autopilot on my Model 3, and that’s what gets used on limited-access highways even on cars with FSD Beta v9. So here’s my experience on limited-access highways.
I do have to keep my hands on the steering wheel, and I’m not permitted to text, play video games, or watch movies even when I’m in a slow-moving traffic jam. Frankly, I wouldn’t feel safe doing those things while driving any car including a Mercedes. And keeping my hands on the wheel seems like the right thing to do in a car that might want me to take over at any moment. It would take one or two tenths of a second for me to get my hands onto the steering wheel if they were off the wheel when an emergency situation arose. It would take one or two seconds to figure out what to do if my mind was on a text, a video game or a movie when a disengagement happened. Even a tenth of a second could make the difference between a close call and an accidental crash.
For the most part, the only time I ever need to intervene while on a limited-access road is when my Tesla and I disagree on which is the most propitious travel lane. This sort of disagreement happens often enough that I have the settings adjusted so that the car needs my consent before it changes lanes.
But if you’re willing to let your Tesla decide which lane to travel in, then Tesla FSD non-beta is already more powerful than the Mercedes level 3. Yes, you need to keep your hands on the wheel and you’re not permitted to watch movies. But otherwise, the Tesla will drive itself as well as the Mercedes, and it will do that very well at full highway speeds, in stop and go traffic jams and everything in between. Level 3 self-driving below 37 MPH isn't an improvement over advanced autopilot.
Tesla's Autopilot is currently a level two driving feature, which basically means that it should be used as an aid to drivers, but that it does not drive on your own. If you've ever used Autopilot then you'll know that Tesla is right on the cusp of level three. With the FSD Beta, I believe Tesla is planning on pushing level three automation to everyone who has purchased the FSD package. Level three is where the FSD features break free and stop just being an aid and turn into an "autonomous" vehicle that the driver should pay attention to, and not just at 37 MPH.
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Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.
The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.
How Adjustable Pickups Work
We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.
Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.
This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.
Here is the new Tesla Robotaxi pickup location adjustment feature.
While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.
Tesla included these release notes in update 25.7.0 of the Robotaxi app:
You can now adjust pickup location
Display the remaining wait time at pickup in the app and Live Activity
Design improvements
Bug fixes and stability improvements
Nic Cruz Patane
Why Predetermined Pick Up Spots?
The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.
This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.
An optimal pickup point likely has several key characteristics identified by the fleet, including:
A safe and clear pull-away area away from traffic
Good visibility for cameras, free of obstructions
Easy entry and exit paths for an autonomous vehicle
This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.
Frequent Updates
This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.
Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.
The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.
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