Tesla’s shares are down 28% to date after a major dip following its second-quarter earnings reported on July 22, with rapidly growing capex squeezing profits and margins. The company ended the second quarter with 1.48 million active supervised Full Self-Driving (FSD) subscriptions, up 56% from the year-ago period. At $99 per month, that works out to about $1.8 billion per year, a small percentage of annual revenue of about $94.8 billion last year, but FSD subscriptions generate significantly higher margins than its core electric vehicle business. CEO Elon Musk said that in locations with FSD approved, the company is seeing a very high take rate, and consumers want the FSD software with whatever car it’s paired with, which could drive sustained EV demand as approvals expand. Tesla’s FSD global fleet has racked up more than 12 billion cumulative miles, creating a network effect where more drivers provide real-world data to improve the software and attract more users. The growing FSD subscription base could also benefit Tesla’s robotaxi service, and if the company can scale its robotaxi fleet within the next year and close the gap with competitor Waymo, its stock could rebound.