Tesla ended the second quarter with 1.48 million active Full Self-Driving 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 the company's annual revenue of about $94.8 billion last year. The subscriptions generate significantly higher margins than Tesla's core electric vehicle business, so the segment should represent a larger share of operating profits than revenue. Tesla's shares are down 28% to date after a major dip following its second-quarter earnings report on July 22, with capex growing rapidly and squeezing profits and margins. CEO Elon Musk said locations with FSD approved are 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 yield more real-world data to train and improve the software, attracting more drivers. The growing subscription base could also benefit Tesla's robotaxi service, where the long-term opportunity lies, potentially helping the stock rebound if the fleet scales within the next year and closes the gap with competitor Waymo. However, considerable uncertainty remains regarding Tesla's ability to scale its robotaxi service, secure additional FSD approvals, and train its software.