EU Currents: Drive Towards The Future
Background
After 18 months of testing and regulatory hurdles, Tesla’s Full Self-Driving Supervised (FSD) technology has been approved for use on public roads by the Dutch vehicle authority RDW. This type of approval by a national regulatory body has been years in the making and could signal a wider regulatory acceptance of self-driving technologies throughout the European Union.
It should be noted that FSD technology doesn’t completely rule out the influence of the driver. Sensors inside the vehicle monitor the driver’s eyes and hand placement, ensuring that the driver is ready to take over control of the vehicle if necessary. If the system detects the behaviors of a distracted driver, the system will give out various prompts and signals, forcing the driver to demonstrate attentiveness to driving.
Tesla addressed RDW’s approval in a post to the social media site X, which said, “We’re excited to bring FSD Supervised to more European countries soon.”
The RDW said in a statement put out after the decision, “Proper use of this driver assistance system makes a positive contribution to road safety.”
Past Issues With FSD
The FSD system, despite this relatively rapid approval in the Netherlands, has faced obstacles in the past. Tesla is facing more than $5.5 billion in lawsuits regarding their FSD technology, and according to reports from the United States’ National Highway Traffic Safety Administration (NHTSA), there have been more than 60 fatal crashes involving the company’s FSD. The incidents in America, while concerning, have not factored into any concerns among Dutch policymakers, likely due to the high standards set by EU regulatory structures.
RDW confirmed that EU standards would ensure that Tesla’s Dutch rollout of FSD Supervised would not have the same issues experienced in the States, due to differences between the software offered in American vehicles versus that in the EU.
The procedures required for the approval of new technology in Europe are as follows: First, if a company like Tesla wants to introduce new automotive technology that lacks current legislation, it can apply for an exemption from market approval with the help of an EU member state. An application is then filed with the European Commission. Once the application is decided upon, the exemption is approved within that member state.
Tesla would not be the first manufacturer to have these types of exemptions approved by the European Union. Presently, two other manufacturers have similar market exemptions. BMW has a market exemption for hands-free lane-changing on motorways, while Ford’s BlueCruise has also been approved for use on motorways.
If the exemption is approved by a majority vote, the exemption is valid in all EU member-states, but without a majority vote, the exemption is only valid for the petitioning member-state.
Tesla’s Opportunity For A Rebound
Tesla’s popularity across Europe has slumped in the last year. Its lineup of vehicles has remained relatively unchanged since its inception, and they have been crowded out in the market by newer and more affordable EV models from both European and Chinese manufacturers. Despite Chinese EVs being subject to EU import tariffs, the dominant Chinese EV manufacturer, Build Your Dreams, saw its sales jump by 227% and its EU market share rise from 0.4% to 1.2%.
Sales of Tesla vehicles across all of Europe dropped by 28% in 2025, while in the EU alone, registrations of Teslas decreased by nearly 40%, and the market share hit an all-time low in 2025, dropping to 8.9% after a lackluster performance for eight straight quarters.
This past February has seen a resurgence for Tesla within the EU market, with the manufacturer seeing a drastic uptick in sales, from a low of 3,157 sales in March 2025 to 9,569 sales so far in 2026, an increase of 203%. Rising fuel costs are believed to have been the driver of this increase in sales, but a successful rollout of the FSD system across the EU could spur further growth.
The company has been offering FSD ride-along programs in Sweden, Germany, France, and Italy since the latter part of 2025. Though these programs are not offered to the public, they are being designed to inspire confidence in the system, hasten regulatory approval, and gain consumer confidence. Sweden’s transportation ministry has actively demonstrated interest in autonomous vehicles due to feedback from the ride-along programs.
Consumers have also responded well to these tests, with many Tesla owners looking to pre-purchase the FSD package once the technology is approved in their nations.
