"Regulatory approval" has been a repeated Elon talking point. When AP2 was released in 2016, the FSD order page implied that FSD only needed validation and regulatory approval. That was 7 years ago. And Tesla released many FSD sub features since 2016 with driver supervision and never needed any regulatory approval despite the page saying that releasing features would be dependent on regulatory approval. And Tesla released FSD beta (with supervision) without any regulatory approval.
The fact is Tesla could release V12 now with supervision without any regulatory approval. They would only need regulatory approval if they wanted to release V12 as "eyes off". And even then, they would only need regulatory approval in certain States. As discussed before, AV regulations in the US are State by State. Some States have strict regulations, others have none. In States like CA with stricter regulations, Tesla would need to get permits which would take years, as we've seen with Waymo and Cruise. It would not be a quick process. Tesla is not going to just release V12 and then get regulatory approval next month to remove supervision everywhere as Elon seems to think. It does not work that way. And Tesla could actually remove driver supervision on FSD beta now in certain States, without any regulatory approval. The real reason Tesla keeps driver supervision is because Tesla knows that FSD Beta is not yet safe enough without supervision. I suspect V12 will require driver supervision for awhile. IMO, Elon has fallen into the classic sunk cost fallacy: he would lose too much if he admitted the truth that full autonomy is still far off. So he doubles down even more on the line that Tesla is close to full autonomy.