Clearly not, since it's the NEW car people were concerned it would be stripped from when sold.
And the language in clause 4 made it pretty clear that's exactly what Tesla was going to do.
They have, as a result of the outcry about it, revised the language to remove that.
So not only were people not overthinking- their accurate reaction to it caused Tesla to walk the change back.
Below are 2 tweets- one the original post they made confirming the reading of clause 4 in the original rules as stripping FSD from the NEW car if you sold it in the future.... and one at the top is the new language walking back the "we will remove FSD when you sell the new car" change:
There's still a few gotchas in there--- you have to have bought FSD WITH the new car, not added it later... they may remove fsd on the old one up to a week before your delivery date of new one, and if you don't end up buying the new one (they can't deliver you a satisfactory car by Sept 30, some change in your personal/financial situation, etc) you just LOSE FSD entirely, etc...)