Tesla stock (TSLA) jumped in premarket after the EV giant announced that it is dramatically increasing its efforts to introduce its Full Self-Driving (FSD) software across Europe. The electric vehicle (EV) maker is scheduled to offer FSD ride-alongs in Germany, Italy, and France next month, bringing the technology directly to consumers as it fights for regulatory approval.
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These ride-alongs will allow Europeans to experience FSD firsthand from the passenger seat. Tesla claims the software can handle nearly all driving scenarios autonomously but stresses that human supervision remains necessary. This aggressive marketing push comes as the company tries to build consumer excitement and pressure regulators simultaneously.
Regulators Cast Doubt on Tesla’s Timeline
Tesla has publicly stated it expects to receive FSD approval from the Dutch regulator RDW by February 2026, claiming it has been “pushing hard” for the rollout for over a year. CEO Elon Musk has previously complained that “Kafkaesque” European bureaucracy is delaying the technology.
However, the RDW immediately countered Tesla’s timeline, noting that while a schedule for approval exists, it “remains to be seen” whether the February target will actually be met. The regulator even had to ask Tesla fans to stop contacting them after the company urged European owners to express their excitement directly to the agency.
Tesla Employees Show Impatience
The push for approval highlights significant internal pressure within Tesla. Employees working on the FSD rollout have expressed frustration with the extensive testing requirements mandated by Dutch regulators.
One Tesla employee reportedly told officials that FSD approval was “mission critical” to the company’s leadership. Tesla has been conducting tests on European roads for months, showcasing videos of its cars navigating complex environments like the streets of Rome and the Arc de Triomphe in Paris.
Competition Squeezes Tesla’s European Sales
Tesla’s urgency to roll out FSD stems, in part, from a need to boost its European sales. The company’s sales have plummeted this year due to increased competition and internal controversies.
Furthermore, data shows Tesla’s European sales in October were down nearly 50% from the previous year. Meanwhile, fierce competition from the Chinese EV giant BYD has intensified, with BYD’s European sales surging by over 200% in the same period. Musk has predicted sales will surge once FSD gets the green light, framing the technology as a vital competitive advantage.
Market Stakes Rise for Approval
For Tesla, FSD approval is critical to reversing its steep sales decline in a key global market and differentiating itself from rapidly expanding rivals like BYD (BYDDY) (BYDDF). For European regulators, the process centers on safety and adherence to strict local testing requirements. The outcome will set a major precedent for how autonomous driving technology enters the European Union.
Is Tesla a Buy, Hold, or Sell?
On Wall Street, Tesla stock currently has a Hold consensus rating from analysts. This is based on 13 Buys, 11 Holds, and 10 Sells issued by 34 analysts over the past three months. Moreover, at $383.04, the average TSLA price target indicates over 10% downside risk from the current trading level.
