Tesla's stock slipped on Wednesday, even as Germany threw its weight behind a faster European Union approval process for the company's Full Self-Driving (FSD) software. The broader EU vote on the technology has been pushed back, with December now seen as the earliest likely date for a bloc-wide decision.
German Transport Minister Steffen Bilger said he supports prompt approval of Tesla's driver-assistance system across the EU, following discussions with the company over technical and liability issues. “My goal is for Tesla drivers to be able to enjoy the benefits of ‘assisted driving’ throughout the EU without delay,” Bilger said. Tesla CEO Elon Musk responded on X with “Danke Schön!” — German for “Thank you very much.”
At the time of writing, TSLA shares were down about 0.97%, marking their first decline in four sessions. The German endorsement adds to support from several other European transport authorities, including those in the Netherlands, Belgium, Denmark, and Croatia.
Speed limits remain a key issue
Despite the backing, regulators continue to scrutinize the safety of Tesla's driver-assistance technology. France has questioned whether FSD currently meets its safety requirements. In July, French Transport Minister Philippe Tabarot raised concerns about speeding, driver attention, and the system's performance in complex urban driving conditions. Sweden has also called for greater scrutiny of FSD's speed-setting functions, insisting that approval should be supported by sufficient safety analysis.
It's important to note that FSD is not fully autonomous. The system can control steering, acceleration, braking, and lane changes, but drivers must remain attentive and ready to take over at any moment.
Germany's support comes with conditions. Tesla has agreed to rename the system “Tesla Assisted Driving” in Europe, as the term FSD could be considered misleading for a supervised driving system. Additionally, the European version will be allowed to exceed the posted speed limit by up to 10%, but the US “Mad Max” setting, which can allow the vehicle to exceed the detected speed limit by as much as 50%, will not be available in Europe.
EU decision could come in December
Tesla had sought an EU-wide vote in October, but the European Union's Technical Committee on Motor Vehicles held further discussions on October 6 instead of voting. That leaves December as the earliest likely opportunity for a bloc-wide decision.
The development comes ahead of Tesla's third-quarter earnings report, scheduled for October 21. Investors are expected to focus on the company's FSD technology, robotaxi plans, and the Optimus project. Goldman Sachs said Tuesday that these businesses could become more important to Tesla's stock than near-term earnings. Wall Street is expecting about $27.91 billion in third-quarter revenue and earnings of $0.45 per share, according to Fiscal.ai.
Germany's support adds to Tesla's efforts to secure wider regulatory approval for FSD in Europe, while restrictions around speed and driver supervision remain central to the approval process.
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