Aside from supply issues due tot he pandemic and demand, I there’s a strong incentive to be conservative in how you roll out self-driving: Cruise and Uber both ran into serious issues because they rolled out self-driving cars too aggressively. It won’t take that many publicized incidents to cause significant financial, legal and reputational issues for Tesla. So, selling FSD as a level 2 system while they are training their networks and gathering performance data makes a lot of sense.
Sure, but saying every earnings call 'it will definitely fully work this year' and then not delivering every year is rather. wrong. He knows it won't work this year, or next. It needs more training and testing as you say; needs either that or a significant AI breakthrough.