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 utilize of this driver assistance system creates a positive contribution to road safety,” RDW stated in a statement on Friday, adding that it would also submit an application for the technology to be utilized throughout the EU.
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 attempt FSD,” stated Morningstar analyst Seth Goldstein.
Tesla shares rose about 0.7% in aftermarket trading on Friday. Its shares have fallen 23% this year, lagging the US stock market.
“We’re excited to bring FSD Supervised to more European countries soon,” Tesla stated in a post on social media platform X, adding that it will start rolling out the technology in the Netherlands shortly.
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.
RDW stated the EU sets stricter requirements for safety during vehicle approvals than the US. “This means that the FSD Supervised version in the US is notcomparable to the FSD Supervised version in the EU,” it stated, without providing further details.
Aiming for Europe-wide adoption
Tesla is the most popular creater of electric cars in the Netherlands, with around 100,000 Model 3 and Model Ys combined that would be eligible for FSD software.
Many companies are working on self-driving systems. Most utilize several hardware sensors to track the driving environment, while Tesla relies primarily on cameras and AI.
Other carcreaters 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.
If it does not win a majority, individual countries may still decide to allow it. Tesla stated last month it was anticipating possible EU-wide approval during the summer.
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