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Tesla Stock (TSLA) Drags as Driverless Ambitions Face More Roadblocks

Story Highlights
  • Several regulators in Europe are concerned about Tesla’s FSD, according to Reuters
  • This comes as the U.S. auto watchdog recently expanded its probe into FSD
Tesla Stock (TSLA) Drags as Driverless Ambitions Face More Roadblocks

Shares in electric vehicle giant Tesla (TSLA) are down roughly 13% year-to-date. This comes as the company’s ambitions to double down on its robotaxi and Full Self-Driving (FSD) rollout continue to face challenges.

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Can Tesla’s FSD Win More Approvals in Europe?

Last month, the EV maker secured the Dutch automotive regulator’s approval of its FSD system, signaling a positive step towards its ambition to penetrate the European market with the technology. However, that dream might hit more speed bumps ahead, as auto watchdogs in the Netherlands, Sweden, Denmark, Finland, and Norway have flagged severe issues with the technology in email correspondence, according to Reuters.

Some of these concerns include the propensity to exceed speed limits, safety of usage in wintry road conditions, and the ease with which drivers can get around safeguards meant to block smartphone use, the outlet reported. This could add more pressure on Tesla, which is still seeing a mixed sales recovery across the region — one of its most important markets.

Tesla’s Driverless Technology Battles Safety Concerns

Already, Tesla’s FSD back home in the U.S. has been under regulatory scrutiny. The U.S. National Highway Traffic Safety Administration (NHTSA) started investigating the technology in 2024, and in October 2025, it launched a big probe into 2.88 million vehicles following reports of traffic violations linked to the system.

To make matters worse, NHTSA expanded that probe earlier in March and is now investigating roughly 3.2 million Tesla vehicles following concerns about performance during poor weather conditions. Moreover, CEO Elon Musk last month admitted that the hardware for the system installed in Tesla vehicles between 2019 and 2023 cannot achieve unsupervised self-driving, contrary to what the company marketed.

Is Tesla a Good Stock to Buy Now?

On Wall Street, analysts now consider Tesla’s shares a Moderate Buy based on their consensus rating. This breaks down to 13 Buys, 12 Holds, and five Sells issued by 30 analysts over the past three months.

However, the average TSLA price target of $410.21 only implies about 5% upside.

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