Investor Gary Black has downplayed the significance of Tesla’s Full Self-Driving (FSD) approval in Europe. According to Black, the approval by the Netherlands Vehicle Authority (RDW) is a non-event for several reasons.
Expected Outcome
Black stated that the approval was expected, and therefore, it does not come as a surprise. He also pointed out that the approved technology is supervised FSD, not unsupervised FSD, which limits its impact.
Limited Adoption
Black believes that the adoption of FSD will remain low until Tesla commits to advertising its benefits to the masses. He emphasized that the company needs to promote the technology more aggressively to increase its take rate.
Netherlands Vehicle Authority Approves FSD
The RDW’s approval of FSD in Europe has sparked hopes that the technology could become available in other parts of the continent. Ashok Elluswamy, Tesla’s artificial intelligence chief, hinted that the self-driving technology could expand to more countries following the Dutch approval.
EU Vehicle Safety Standards
It’s worth noting that EU vehicle safety standards are recognized by all member states of the trade bloc, as well as by 56 member states of the United Nations Economic Commission for Europe (UNECE). This includes countries like the US, Canada, Japan, and South Korea.
Tesla’s Sales Performance
Meanwhile, Tesla’s sales performance has been a mixed bag. The company’s CEO, Elon Musk, recently highlighted that Tesla outsold its rivals in the US domestic market during the first quarter of 2026. However, the company’s retail sales in China fell by over 16% year-over-year in the same period, despite an increase in wholesale figures.
Price Action
Tesla’s stock surged 0.99% to $352.42 at market close on Monday, with a further 0.26% increase to $353.33 during after-hours trading.
Conclusion
In conclusion, while Tesla’s FSD approval in Europe is a positive development, its impact is limited by the supervised nature of the technology and the company’s lack of advertising efforts. Tesla’s sales performance remains a key area of focus, with the company facing challenges in China despite its strong showing in the US market.