Tesla shares TSLA traded lower on Wednesday even as Germany backed a faster rollout of the company’s Full Self-Driving (FSD) software across the European Union, while a broader EU vote on the technology was pushed back.
German Transport Minister Steffen Bilger said he supports prompt approval of Tesla’s driver-assistance system across the bloc after 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 to the development on X with “Danke Schön!”, which translates to “Thank you very much.”
TSLA shares were about 0.97% lower at the time of writing and were tracking their first decline in four sessions.
Germany’s position adds to support for Tesla’s FSD technology from several European transportation authorities, including those in the Netherlands, Belgium, Denmark and Croatia.
Speed limits remain a key issue
Tesla’s progress in Europe comes as regulators continue to scrutinize the safety of its 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 complicated urban driving conditions.
Sweden has also called for greater scrutiny of FSD’s speed-setting functions and said approval should be supported by sufficient safety analysis.
Despite its name, FSD is not fully autonomous.
The system can control steering, acceleration, braking, and lane changes, but drivers must remain attentive and ready to take control.
Germany’s support also comes with restrictions.
Tesla has agreed to rename the system “Tesla Assisted Driving” in Europe because the term FSD could be considered misleading for a supervised driving system.
Germany also agreed with Tesla that the European version could exceed the posted speed limit by up to 10%.
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 been seeking 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 on the technology.
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 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.
The post Tesla stock in red even as Germany backs Tesla’s FSD rollout across Europe appeared first on Invezz
