So it happens, then people realize they can earn money with it, then tesla realizes they can sell it now for 4 times more. In the end, you're not going to earn 4 times more because Tesla or whoever makes the car will take that into account and skim off that top.
As with everything, competitors will prevent a single offering from being priced too high.
I personally don't think Tesla will ever develop the FSD architecture that ends up used by everyone else.
Whilst I agree with Elon that _technically_ FSD could be done only with cameras, because that's how humans do it, humans only drive "fine" and not "perfectly". We need cameras, LIDAR and whatever other sensors we can fuse in.
The software that runs the thing will not be developed by a car company, because car companies (yes, even Tesla) are absolute dogshit at software. All of them. Every single one. They can't even make a proper entertainment system that isn't laggy, let alone all of the legwork & research required to piece together enough models in the right way for FSD that meets the lofty standards of the public (ie a perfect 0 fatalities, vs angry evolution-driven hormonal monkeys in multi-tonne hunks of steel powered by explosions whose fatality count grows every day at 3700 deaths/day, 8th leading cause of death globally).