AMSTERDAM, April 10 (Reuters) - Tesla on Friday said Dutch regulators had approved the use of its driver assistance software which handles most driving tasks on highways and city streets under human
Tesla's supervised self-driving software gets Dutch okay, first in Europe
European Approval and Implications for Tesla's Growth
By Toby Sterling, Abhirup Roy and Bart H. Meijer
Regulatory Milestone in the Netherlands
AMSTERDAM/SAN FRANCISCO, April 10 (Reuters) - Dutch regulators approved the use of Tesla's self-driving software with required human supervision on highways and city streets in a European first for the electric car maker, which hopes to see similar action from the rest of the European Union.
Significance for Tesla's Valuation and Strategy
Wide FSD adoption is central to Tesla's growth strategy. Much of the company's $1 trillion valuation hinges on Chief Executive Elon Musk's bet that artificial‑intelligence-driven self‑driving software and robotaxis will become a major revenue stream.
Details of the Dutch Approval
The Netherlands' approval for the technology, called Full Self‑Driving Supervised, which can steer, brake and accelerate a car, follows 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 in a statement on Friday, adding that it would also submit an application for the technology to be used throughout the EU.
Market Impact and Consumer Response
Sales Trends and Expectations
Tesla is also counting on self-driving software to boost vehicle sales, which have slowed in Europe due to its aging EV lineup and Musk's far‑right political rhetoric that has alienated some consumers. Tesla's sales in Europe rose in February for the first time in more than a year.
"I expect FSD approval by the Dutch authority and subsequent European regulators will lead to improved sales in Europe over the coming months as consumers are excited to try FSD," said Morningstar analyst Seth Goldstein.
Tesla shares rose about 0.7% in aftermarket trading on Friday. Its shares have fallen 23% this year, lagging the U.S. stock market.
Company Statements and Rollout Plans
"We're excited to bring FSD Supervised to more European countries soon," Tesla said in a post on social media platform X, adding that it will start rolling out the technology in the Netherlands shortly.
Comparison with U.S. Market and Regulatory Differences
FSD Supervised Availability and Legal Challenges
The software is already available as a subscription for U.S. drivers, where it is also facing consumer lawsuits and federal investigations after crashes and reports of traffic violations.
Stricter EU Safety Requirements
RDW said the EU sets stricter requirements for safety during vehicle approvals than the U.S. "This means that the FSD Supervised version in the U.S. is NOT comparable to the FSD Supervised version in the EU," it said, without providing further details.
Aiming for Europe-Wide Adoption
Tesla's Market Position in the Netherlands
Tesla is the most popular maker of electric cars in the Netherlands, with around 100,000 Model 3 and Model Ys combined that would be eligible for FSD software.
Competition and Technology Differences
Many companies are working on self-driving systems. Most use several hardware sensors to track the driving environment, while Tesla relies primarily on cameras and AI.
Other Automakers' Approaches
Other carmakers including Mercedes, Ford, and BMW have introduced 'hands-free' driving technology on select highways and at limited speeds, mostly in Germany. Tesla's is the first that will be usable in a wider range of situations.
Path to EU-Wide Approval
RDW said it would now submit the application for authentication within the entire EU to the European Commission. All member states will then vote on the application, which requires a majority within the responsible committee for the system to become valid EU-wide.
If it does not win a majority, individual countries may still decide to allow it. Tesla said last month it was anticipating possible EU-wide approval during the summer.
Reporting Credits
(Reporting by Abhirup Roy in San Francisco and Toby Sterling and Bart Meijer in Amsterdam; Editing by David Gregorio, Peter Henderson and David Gaffen)
