Tesla is training a new Full Self-Driving (FSD) model featuring significant improvements in video processing and a tenfold increase in parameters, with a potential public release at the end of next month if testing is successful. The FSD system, which assists with navigation while requiring driver oversight, is crucial to Tesla's strategy amid rising competition in the electric vehicle market. Despite the advancements, Tesla faces challenges in its core automotive sales, experiencing a 16% revenue decline in Q2 and a 23.55% drop in stock value this year.