Tesla cars not ready to be approved as fully self-driving

Some analysts say that Tesla's primary problem is not regulators but the software itself, given the complexity of autonomous driving

Tesla Inc.'s advanced driver assistant software won't gain regulatory approval in 2022, CEO Elon Musk said in remarks which indicate the company is not yet able to satisfy authorities that its cars can be driven without someone behind the wheel.

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The Silicon Valley automaker sells a $15,000 software add-on called "Full Self-Driving" (FSD) which enables its vehicles to change lanes and park autonomously. That complements its standard "Autopilot" feature which enables cars to steer, accelerate and brake within their lanes without driver intervention.

However, the cars still need to be driven with human oversight. A completely autonomous vehicle would require regulatory approval.

Musk told a post-earnings call on Wednesday that all FSD users in North America will get an upgraded version at the end of the year, adding that while its cars are not ready to have no one behind the wheel, drivers would rarely have to touch the controls.

"The car will be able to take you from your home to your work, your friend's house, the grocery store without you touching the wheel," he said.

"It's a separate matter as to will it have regulatory approval. It won't have regulatory approval at that time," he added.