The update comes just days before Tesla’s Q2 earnings, with Wall Street expecting a drop in both profit and revenue.

Tesla CEO Elon Musk said his company is gearing up for a major leap in its Full Self-Driving (FSD) capability, as it integrates software improvements from the Austin Robotaxi program into its main production release.

“Your Tesla self-driving capability will see a step change improvement as we integrate upgrades for the Austin robotaxi build into the general production release,” Musk wrote on X. 

He added that Tesla is currently validating that these improvements don’t create regressions in other regions.

The news comes as Tesla pushes its autonomous ride-hailing service in Austin, where it launched just over two weeks ago. 

Last week, the company rolled out version 25.7.5 of the Robotaxi app, adding features such as walking directions to and from pickup points, destination closure alerts, and post-booking destination changes. 

Tesla also expanded coverage to the University of Texas at Austin, which serves over 53,000 students.

In response to user questions, Musk said a Bay Area launch depends on regulatory approval, adding that authorities “are being quite reasonable.” 

“For Europe and China, we are awaiting regulatory approval. Hopefully, soon,” he added.

The timing of Tesla’s Full Self-Driving upgrade and Robotaxi rollout coincides with the automaker's second-quarter earnings report, scheduled for Wednesday after the market closes. 

Wall Street is expecting a decline, with Q2 reported earnings per share of $0.41, compared to $0.52 a year ago. Revenue is forecast to decline to $22.36 billion, representing a decrease from the $25.50 billion Tesla generated a year earlier.

The company also delivered 384,122 vehicles during the quarter. It’s down 13.5% from the same period last year, marking the second consecutive quarter of falling sales.

Tesla stated in April that it’s still aiming to begin manufacturing its next generation of more affordable vehicles in the first half of 2025, although no new details have been officially announced yet.

Meanwhile, Musk teased a potential “epic demo” later this year, fueling speculation that the long-delayed next-generation Tesla Roadster may finally make its production debut. 

Initially unveiled in 2018 alongside the Tesla Semi, the Roadster has yet to be released, even as rivals like Lucid and Xiaomi surpass it in high-performance EV metrics.

On Stocktwits, retail sentiment for Tesla was ‘neutral’ amid ‘low’ message volume late Sunday. 

Tesla’s stock has declined 13.1% so far in 2025.

See also: Netflix Dips Despite Upbeat Earnings But Stock Gets Strong Backing From Retail Investors

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