FSD is essentially attacking the market for renting short term access to vehicles. So taxis rental cars and such.
The claim is also vehicle ownership will be lower as you can resell time of your car when you are not using.
And you read or watch TV while riding.

Let’s check these benefits out with US consumer buying preferences. Where is the most profit in vehicles today? Big trucks with 4 wheel drive, and driven with zero load and no use of 4 wheel drive 99% of the time. Why not rent that when you need it? Because the emotional need for ownership is high and consumers can afford it. The next spending pile is SUVs. Mostly driven empty with high gas bills due to 4 wheel drive not used 99% of the time.
So how does a small robo taxi or FSD in my very expensive vehicle purchased for an emotional high fit in?
However the most compelling reason FSD does not match consumer preferences it most consumers like to drive. Driving is control of part of their life, it is therapeutic. At least in the US.
So sure where renting a vehicle for short term use like a city with terrible parking makes sense. But city folks have a preferred solution. Bus and subways. Yes and taxi or Uber or rent an electric scooter or car sharing.
Betting on FSD is a really big risk. Unless you make FSD mandatory like seat belts. Makes sense why Musk is eager to be close to king Trump.