Elon Musk says Tesla FSD beta can lull users into thinking their cars are driverless

Tesla, the electric vehicle manufacturer, is set to expand its FSD Beta program. This button will allow customers to download unfinished versions of Tesla's driver aid software for testing on public roads.
Elon Musk, Tesla CEO, said Friday that a previous version FSD Beta was "not great." He also cautioned that FSD Beta can give drivers a false sense security and that they don’t have to pay attention while FSD Beta is active, even though they must remain alert behind the wheel.

CNBC reached out to Tesla and CEO Musk but they didn't immediately reply.

Tesla offers two packages of driver assistance systems: Autopilot (the standard package) and FSD (the premium package). Full Self-Driving in America is what Tesla calls its premium package. According to the company's website and users manuals, neither of these systems makes Tesla's cars self-driving.

Musk has been promising FSD Beta buttons to his fans for at least six month. Musk wrote on March 9, 2021: "Build 8.3 should be QA tested by the end of next week so that's approximately when the download button should appear."

On Thursday, the CEO revealed that Tesla would require all owners to use the Beta button to prove their driver skills before they can access their FSD Beta download.

Musk wrote, "Beta button will request permission for Tesla insurance calculator to assess driving behaviour." Beta access will be granted if driving behavior is consistent for seven days. (In August 2019, the company started selling insurance in California.

Hiromichi Mzuno, a Tesla board member, shared Musk's announcement. He wrote on Friday: "You have to be a good driver not drive. This may become a new standard."

Musk responded to Mizuno Friday night

"Ironically, yes at the moment. Sometimes, FSD beta system can appear so easy that it's not necessary to be vigilant. Any beta user who isn’t careful will be kicked. 2000 beta users have been using FSD beta for nearly a year without any accidents. It's important to keep it that way.

Musk's tweet contradicts the facts regarding FSD Beta that were contained in the California Department of Motor Vehicles Autonomous Vehicles Branch memo dated March 2021.

Miguel Acosta, the DMV's Autonomous Vehicles Branch Chief, discussed the memo with Tesla employees that day, including Eric Williams, associate general counsel, and CJ Moore, Autopilot software director.

Acosta wrote that they had informed him that the FSD Beta program, as of March 9, 2021 included 753 Tesla employees. 71 of these non-employees were less than half the 2,000 FSD Beta users Musk referred to in Friday's tweet.

CNBC obtained directly the memo and correspondence between Tesla, California DMV and Plainsite, a legal transparency site.

Tesla described their FSD Beta features, even the newest, as a Level 2 driver assist system rather than fully driverless technology in their correspondence.