Tesla might soon be getting regulatory approval for its Full Self-Driving system in Europe and China. If granted, the approval could reshape the company’s growth strategy beyond electric vehicles.
CEO Elon Musk says the company may receive approval for its Supervised Full Self-Driving (FSD) system in Europe and China as early as next month. Musk shared this update during his first appearance at the World Economic Forum in Davos. The regulatory progress comes at a time when Tesla is under pressure to increase its revenue sources.
According to Musk, Tesla is hoping to secure approval in Europe next month, with China’s likely to happen around the same time. Such approvals would allow the automaker to expand paid FSD offerings, opening new software revenue streams in two of the world’s largest EV markets.
BREAKING: Elon says Tesla is hoping to get approval for FSD in Europe and China “next month.” pic.twitter.com/1DKQR7pc3f
— Drive Tesla (@DriveTeslaca) January 22, 2026
Regulatory hurdles have slowed FSD’s rollout in Europe, where stricter safety standards and fragmented approval processes apply. The Dutch vehicle authority, RDW, said in November that it expects to make a decision on Tesla’s FSD software in February. Tesla has previously mentioned that approval in the Netherlands could open the doors to recognition across other European Union countries.
The timing of this development couldn’t have been better. According to the California New Car Dealers Association, the EV maker saw its vehicle registrations fall by 11.4 percent in 2025, and its market share dropped below 50 percent.
For the second consecutive year, the company once known as the leader in electric mobility recorded a decline in global deliveries. It also lost its position as the world’s largest EV maker to China’s BYD.
Musk has increasingly portrayed Tesla as an artificial intelligence and robotics company, even as electric vehicles remain its primary revenue source. He reiterated that the AI developed for autonomous driving will also support Tesla’s humanoid robot ambitions.
