Tesla’s Full Self-Driving (FSD) system could receive regulatory approval in both Europe and China as early as next month, CEO Elon Musk said on Thursday, signaling a major step in the electric vehicle maker’s push to expand high-margin software revenues.
Speaking at the World Economic Forum in Davos, Musk said Tesla was hopeful of gaining approval for its “Supervised Full Self-Driving” system in Europe by February, with China potentially following on a similar timeline. “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China,” he said, according to Reuters.
The comments come as Tesla seeks to offset slowing global vehicle sales by leaning more heavily on software-based offerings such as FSD, which is priced significantly higher than comparable driver-assistance systems offered by many rivals. While regulatory approvals and early robotaxi trials highlight Tesla’s advances in artificial intelligence, critics argue the technology remains in its early stages relative to its cost.
In Europe, Tesla’s rollout of FSD has lagged behind the United States due to stricter vehicle safety regulations and a fragmented approval process across the European Union. The company has been pursuing authorization for an assisted version of FSD, rather than a fully autonomous system, to comply with existing rules.
The Dutch vehicle authority, RDW, is expected to play a key role in the approval process, with a decision anticipated in February. Tesla has previously said that approval in the Netherlands could pave the way for deployment across other EU countries, even before a bloc-wide authorization is finalized.
China represents another crucial market for Tesla, both in terms of vehicle sales and technology development. Approval of FSD there would mark a significant milestone, given the country’s tight regulatory oversight and growing competition from domestic EV and autonomous driving firms.
If approved, the expansion of FSD into Europe and China would strengthen Tesla’s strategy of monetizing software and AI capabilities, potentially opening a new phase of growth beyond traditional car sales.
