Tesla's semi-autonomous FSD falls in the uncanny valley between being good enough to lull you into an inattentive state, but not reliable enough to be better than humans with all possible unforseen situations of the sort that cause real-world crashes and either deal with it safely without driver intervention or at least safely slow to a stop without disaster.

You either capture Level 4 autonomy or you don't, and currently Waymo are leading the way in this, not Tesla, who are Level 3 at best - curious, because with the ever-increasing rate of AI competence and their massive head start, you'd expect them to have cracked Level 4 by now.

The prospect of Level 4+ FSD and being #1 in an ever-expanding market without realistic competition were Tesla's USPs and they are in the process of losing both.

I suspect the market knows this and sees the recent better than expected results as a short-term reprieve, not a renewal of the dream.