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Tesla’s Full Self-Driving system nears approval in Europe and China

Elon Musk expects regulatory approval for Tesla’s FSD in Europe and China soon, as the company also advances robotaxi tests and humanoid robot plans.

DAVOS: Tesla CEO Elon Musk expects regulatory approval for its driver-supervised Full Self-Driving (FSD) system in Europe and China as early as next month.

Musk announced the anticipated timeline during his first appearance at the World Economic Forum in Davos.

“We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China,” he said.

The push for FSD approval comes as Tesla seeks to boost software revenue amid declining electric vehicle sales.

Regulatory progress in Europe has been slower than in the US due to tougher safety rules and a fragmented framework.

The Dutch vehicle authority RDW said in November it expected to decide on FSD in February.

Approval in the Netherlands could allow a rollout in other EU countries ahead of formal European Union endorsement.

In China, smart features similar to FSD remain restricted to a limited number of vehicles.

Tesla had to halt software update deliveries there last March, citing the need for additional regulatory approval.

The company made a long-awaited update to its autopilot software in China last February.

Some owners expressed disappointment that the system, for which they paid more than $9,000, came with operational restrictions.

FSD is classified as an advanced driver assistance feature that requires drivers to remain attentive.

Regulators globally have scrutinised it amid concerns over the safety and oversight of automated driving technologies.

Separately, Musk said Tesla has started robotaxi rides in Austin, Texas, without safety monitors.

The service began in June with a Tesla employee in the front passenger seat overseeing the car’s behaviour.

Shares of the automaker closed 4.2% higher on Thursday after social media posts about the driverless robotaxi rides circulated.

Tesla operates a ride-hailing service in California and has permits to test and deploy its robotaxis in Texas, Arizona and Nevada.

The Austin deployment without safety monitors represents progress, but Tesla’s robotaxi ambitions remain short of earlier targets.

Registration of Tesla’s vehicles fell 11.4% in California last year, with its market share of new cars slipping below 10%.

The company reported a second consecutive drop in vehicle deliveries in 2025, ceding its position as the world’s largest EV maker to China’s BYD.

Musk has repeatedly said AI developed for autonomous vehicles will also underpin Tesla’s planned humanoid robots.

He said on Thursday that he expects robots to outnumber humans.

Tesla expects to sell its Optimus humanoid robots to the public by the end of next year.

This timeline is later than the one Musk had previously outlined.

Industry experts say scaling humanoid robots for real-world use is technically complex.

A key challenge is a lack of data needed to train the AI models that underpin robot behaviour.

“For Optimus, what they need is credible evidence of scalable manufacturing, a regulatory path, and unit economics if possible,” said Ken Mahoney, CEO of Mahoney Asset Management.

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