Key Points:
- Dutch regulators approved Tesla’s Full Self-Driving Supervised software for public roads.
- This is the first European approval, with the RDW applying for EU-wide adoption.
- FSD is crucial for Tesla’s growth strategy, aiming for increased sales in Europe.
- The EU version of FSD Supervised has stricter safety requirements than the U.S. version.
Dutch regulators have approved Tesla’s self-driving software for use on highways and city streets, with required human supervision. This is a first for the electric car maker in Europe, and Tesla hopes other European Union countries will follow suit. Widespread adoption of Full Self-Driving (FSD) is central to Tesla’s growth strategy. Much of the company’s $1 trillion value depends on CEO Elon Musk’s belief that AI-driven self-driving software and robotaxis will become a major source of income.
The Netherlands’ approval for the technology, called Full Self-Driving Supervised, allows the car to steer, brake, and accelerate. This approval came after more than 18 months of tests and analysis by the Dutch vehicle authority RDW. “Proper use of this driver assistance system makes a positive contribution to road safety,” RDW said on Friday, adding that it would also ask for the technology to be used across the entire EU.
Tesla is also relying on self-driving software to boost car sales. Sales in Europe have slowed due to its older electric vehicle lineup and Musk’s strong right-wing political statements, which have put off some customers. Tesla’s sales in Europe saw an increase in February for the first time in over a year. “I expect FSD approval by the Dutch authority and later by European regulators will lead to better sales in Europe in the coming months as customers are excited to try FSD,” said Morningstar analyst Seth Goldstein.
Tesla shares went up about 0.7% in after-hours trading on Friday. Its shares have fallen 23% this year, performing worse than the U.S. stock market. “We’re excited to bring FSD Supervised to more European countries soon,” Tesla posted on social media platform X, adding that it will start rolling out the technology in the Netherlands shortly. The software is already available by subscription for U.S. drivers. There, it is also facing lawsuits from customers and federal investigations after crashes and reports of traffic violations.
RDW stated that the EU has stricter safety rules for vehicle approvals than the U.S. “This means that the FSD Supervised version in the U.S. is NOT the same as the FSD Supervised version in the EU,” it said, without giving more details. Tesla is the most popular electric car maker in the Netherlands, with about 100,000 combined Model 3 and Model Y cars that would be eligible for FSD software.
Many companies are developing self-driving systems. Most use several hardware sensors to monitor the driving environment, while Tesla mainly uses cameras and AI. Other carmakers, including Mercedes, Ford, and BMW, have introduced ‘hands-free’ driving technology on certain highways and at limited speeds, mostly in Germany. Tesla’s system is the first that will be usable in a wider range of situations.
RDW said it would now submit the application for approval across the entire EU to the European Commission. All member states will then vote on the application. A majority vote within the responsible committee is needed for the system to become valid EU-wide. If it doesn’t get a majority, individual countries may still decide to allow it. Tesla said last month it expected possible EU-wide approval during the summer.
