Musk Says Europe, China Could Approve Tesla’s FSD as Early as Next Month

Tesla could receive regulatory approval in Europe and China for its driver-supervised Full Self-Driving (FSD) system as soon as next month, CEO Elon Musk said on Thursday, raising hopes that the company can unlock new software revenue as vehicle sales slow.

Speaking at the World Economic Forum in Davos, Musk said Tesla is optimistic about progress with regulators outside the U.S., where FSD has already been rolled out more broadly.

“We hope to get supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China,” Musk said during his first appearance at the annual gathering.

Winning approval in Europe has proven challenging for Tesla, as stricter vehicle safety standards and a fragmented regulatory framework have delayed deployment compared with the U.S. The Netherlands’ vehicle authority, RDW, said in November it expects to reach a decision on FSD in February. Tesla has previously noted that approval in the Netherlands could allow other EU countries to recognize the exemption, enabling a wider rollout ahead of a formal EU-wide decision.

Despite recent regulatory momentum and early robotaxi testing, Tesla’s autonomous driving ambitions still face scrutiny, especially given the company’s lofty valuation relative to traditional automakers and many technology firms.

Musk also said Tesla has begun operating robotaxi rides in Austin, Texas, without safety monitors. The service initially launched in June with a Tesla employee seated in the front passenger seat to oversee vehicle behavior. News of the driverless rides helped push Tesla shares up about 3% following social media posts highlighting the development.

Tesla currently runs a ride-hailing service in California and has secured permits to test and deploy robotaxis in Texas, Arizona and Nevada. Still, the Austin deployment falls short of Musk’s earlier promises to operate robotaxis across several major U.S. cities, underscoring the regulatory and safety hurdles slowing large-scale rollouts.

At the same time, Tesla is facing pressure in its core vehicle business. Registrations of Tesla vehicles dropped 11.4% in California last year, with the company’s market share in the state falling below 50%, according to the California New Car Dealers Association. Globally, Tesla reported a second straight decline in vehicle deliveries in 2025 and lost its title as the world’s largest electric vehicle maker to China’s BYD.

FSD remains classified as an advanced driver assistance feature that requires drivers to stay alert at all times, and regulators continue to closely examine the system amid broader concerns about the safety and oversight of automated driving technologies.

Humanoid Robot Push

Beyond vehicles, Musk reiterated that much of Tesla’s artificial intelligence work for autonomous driving will also support its humanoid robot project, Optimus. He said he believes robots will eventually outnumber humans and that Tesla aims to sell humanoid robots to the public by the end of next year—later than previously planned.

Industry experts remain cautious, noting that scaling humanoid robots for real-world use is technically complex, in part due to limited data for training AI models.

“For Optimus, what the market needs is credible evidence of scalable manufacturing, a clear regulatory path, and some visibility on unit economics,” said Ken Mahoney, CEO of Tesla shareholder Mahoney Asset Management.