Tesla is facing growing regulatory skepticism in the European Union over its Full Self-Driving (FSD) system, according to internal correspondence and official records, even as the company pushes for broader approval of its automated driving technology across the bloc.
The concerns come as EU regulators evaluate whether Tesla’s “FSD (Supervised)” system meets strict safety and legal standards required for deployment beyond limited national approvals. The system, which performs steering, braking, and lane changes under driver supervision, has already received provisional clearance from Dutch authorities but still requires EU-wide endorsement.
According to documents and emails reviewed by regulators, officials in several countries including Sweden, Finland, Denmark, Norway, and the Netherlands have raised questions about key safety issues. These include reports of the system’s tendency to exceed speed limits, performance risks on icy roads, and concerns that drivers could bypass safeguards intended to prevent distraction.
Regulators have also scrutinized Tesla’s branding of the technology, warning that the term “Full Self-Driving” may create a misleading impression about the system’s actual capabilities, which still require full driver attention.
The Dutch vehicle authority, which has been leading the EU assessment process, has proposed broader approval following testing and is coordinating with the European Commission. However, final authorization would require consensus among EU member states, making approval uncertain and politically sensitive.
Tesla CEO Elon Musk has expressed confidence that EU approval is achievable in the near term, but regulators remain divided. While some testing feedback has been positive—particularly regarding performance in complex urban environments—others argue that more evidence is needed before wider deployment.
The review comes at a critical time for Tesla as it seeks to revive slowing sales in Europe and expand its software-driven revenue streams, including subscription-based autonomous driving features and future robotaxi plans.
Industry observers note that Europe’s cautious regulatory environment reflects broader concerns about safety, liability, and the readiness of autonomous systems for mixed traffic conditions. The outcome of the ongoing EU review is expected to play a key role in shaping Tesla’s expansion strategy in the region.