Musk Expects Tesla FSD Approval in Europe, China Next Month
Tesla is expected to receive regulatory authorization in Europe and China as soon as next month for its driver-assisted Full Self-Driving system, CEO Elon Musk stated, as the electric carmaker aims to increase software earnings amid a decline in vehicle sales.
While regulatory progress on FSD and early robotaxi deployments point to momentum in Tesla's AI ambitions, the technology remains nascent relative to a valuation that far outstrips those of many technology and automotive companies.
"We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China," Musk said at the World Economic Forum in Davos.
Tesla has been seeking approval for the system in Europe, where tougher vehicle safety rules and a fragmented regulatory framework have slowed deployment compared with the U.S.
The Dutch vehicle authority RDW said in November it expects to decide on FSD in February. Tesla had said once it secures approval in the Netherlands, other EU countries can recognize the exemption and allow a rollout ahead of a formal EU approval.
Musk said Tesla has started robotaxi rides in Austin, Texas, without safety monitors. The service started in June with a Tesla employee in the front passenger seat overseeing the car's behavior.
Shares of the automaker were up about three percent after social media posts about the driverless robotaxi rides circulated. Tesla operates a ride-hailing service in California and has received permits to test and deploy its robotaxis in Texas, Arizona and Nevada.
While the deployment in Austin without safety monitors represents progress, Tesla's robotaxi ambitions remain well short of earlier targets to operate in several major U.S. cities, highlighting the regulatory and safety hurdles that hinder rapid rollouts.
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Registration of Tesla's vehicles fell 11.4 percent in California last year, with its market share of new cars in the US state slipping below 10 percent, according to a report by the California New Car Dealers Association.
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The company reported a second consecutive drop in vehicle deliveries in 2025, ceding its position as the largest electric vehicle maker in the world to China's BYD.
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FSD is classified as an advanced driver assistance feature that requires drivers to remain attentive, and regulators have scrutinized it amid concerns over the safety and oversight of automated driving technologies.