Walter Isaacson’s Elon Musk biography is set to be published on Tuesday, and a new preview of the book illustrates details about Tesla’s development of the upcoming Full Self-Driving (FSD) version 12.
In an additional preview of his Musk biography for CNBC, Isaacson discusses the use of AI in the development of Tesla’s FSD v12, in a shift that took place within the last several months. Isaacson talks about Tesla’s recent development of the upcoming FSD v12, which he and Tesla demonstrate has moved away from a “rules-based” approach.
Notably, FSD v12 is expected to use billions of video frames from real-world driving incidents to train its neural network rather than using thousands of lines of code like previous versions. In a conversation with Musk last December, Tesla Autopilot employee Dhaval Shroff had likened the concept to the popular chatbot ChatGPT, instead for use with driving.
“It’s like ChatGPT, but for cars,” Shroff said. “We process an enormous amount of data on how real human drivers acted in a complex driving situation, and then we train a computer’s neural network to mimic that.”
Surprisingly enough, Tesla only shifted toward this “neural network planner” approach recently. By the beginning of this year, however, the neural network had already analyzed 10 million video clips based on the best-case-scenario drivers the system had access to. Musk instructed employees at the company’s Buffalo, New York facility who were in charge of analyzing the footage to train the AI on things “a five-star Uber driver would do.”
Moving from a rules-based to a network-path-based AI approach allowed FSD to use human driving data to avoid obstacles, even if breaking some rules was necessary. Shroff helped demonstrate the idea to Musk with a demo featuring trash bins, debris, and upturned traffic cones, which the car handled surprisingly well.
“Here’s what happens when we move from rules-based to network-path-based,” Shroff explained. “The car will never get into a collision if you turn this thing on, even in unstructured environments.”
Musk quickly took to the idea, as can be seen in a recent livestream of Tesla’s FSD v12 software in Palo Alto with Autopilot software director Ashok Elluswamy. He has repeatedly spoken about the upcoming software version’s impressive driving results, despite one small moment in the drive where the car almost ran a red light.
In any case, Musk could argue that the red-light moment is a good case for the need for self-driving software to continually learn. Given that it will constantly be trained from the video data generated by camera footage from real-world drivers, it should theoretically make it safer over time, according to Musk.
During development, Musk also reportedly latched onto the fact that it took over a million video clips for the neural network to begin performing well, though he looks forward to what significantly more data will do for FSD.
Still, critics and regulators have expressed concerns about the faults of human drivers training AI-based driving systems, and Tesla has repeatedly been questioned by the National Highway Traffic Safety Administration (NHTSA) about its Autopilot and FSD beta systems.
According to Isaacson, Tesla plans to release FSD v12 as soon as regulators approve it. Meanwhile, an ongoing study by the National Highway Safety Board is looking to determine if self-driving cars should be permitted to imitate human driving actions that blur traffic rules, such as creeping up at stop signs.
Musk said in April that he expects Tesla to reach full autonomy within a year, though he has also been known to share ambitious targets for the software in the past.
You can read Walter Isaacson’s full account of the development of Tesla FSD v12 here, in a CNBC preview of the upcoming Elon Musk biography.
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News
Tesla rolling out Robotaxi pilot in SF Bay Area this weekend: report
Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

Tesla is reportedly preparing to launch a Robotaxi pilot program in the Bay Area this weekend, with invites to a select number of customers reportedly being sent out as early as this Friday.
The update was shared in a report from Insider, which cited an internal memo from the electric vehicle maker.
New Robotaxi service launch
According to Insider, the Robotaxi service in the Bay Area is set to launch as soon as Friday. Thus, some Tesla owners in the area should receive invites to use the driverless ride-hailing service. Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.
The publication noted that the Robotaxi service’s geofence in its Bay Area launch will be quite large, as it will include Marin, much of the East Bay, San Francisco, and San Jose. This is not surprising as California has long been saturated with Teslas, and it is home to several of the electric vehicle maker’s key facilities.
Unlike the Austin pilot, the Tesla Robotaxi service’s pilot in the Bay Area will use safety drivers seated in the driver’s seat. These drivers will be able to manually take over using the steering wheel and brakes as needed. As per a spokesperson from the California DMV, the agency recently met with Tesla but the company is yet to submit a formal application to operate fully driverless cars.
Tesla Robotaxi expansion
Interestingly enough, Tesla did tease the release of its Robotaxi service to the Bay Area in its second quarter earnings call. While discussing the service, Tesla VP of Autopilot/AI Software Ashok Elluswamy mentioned that the company will initially be rolling out Robotaxis with safety drivers in the San Francisco Bay Area. He did, however, also highlight that the electric vehicle maker is working hard to get government permission to release the service for consumers.
“The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he stated.
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Tesla is ready with a perfect counter to the end of US EV tax credits
Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup.

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter.
Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.
End of the US EV tax credit
While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.
Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.
Affordable variants
During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4.
“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated.
These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.
Elon Musk
Elon Musk reveals Tesla’s next Robotaxi expansion in more ways than one
Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.

Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.
Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.
The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.
🚨 Elon Musk says Tesla’s Robotaxi geofence in Austin will get “even bigger and longer” in “a couple weeks or so” pic.twitter.com/0gLeKfURMi
— TESLARATI (@Teslarati) July 23, 2025
The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”
Musk’s full quote regarding the expansion of the geofence and the timing was:
“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”
The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.
Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.
Musk added:
“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”
We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.
Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.
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