TSLA Stock Rises Marginally Premarket: Elon Musk’s FSD Ambitions In Europe Hang In Balance Ahead Of EU Regulatory Hearing

• Tesla secured a limited approval in April after the Dutch regulator RDW approved its “FSD (Supervised)” system.
• However, regulators across Sweden, Finland, Denmark, and Norway have raised concerns about its real-world performance.
• The EU review is important for Tesla’s Europe strategy after a 27% sales decline last year.

Shares of Tesla, Inc. (TSLA) rose marginally in premarket trading on Tuesday as the company heads into an EU hearing that could determine the fate of its Full Self-Driving (FSD) rollout in Europe amid rising regulatory concerns over safety and real-world performance.

TSLA stock climbed 0.4% on Monday, marking its third straight session of gains to end at $392.51. 

EU Scrutiny Builds After Dutch FSD Approval

Tesla has been building toward a wider European rollout after securing a limited approval in April, when the Dutch regulator RDW granted approval for its “FSD (Supervised)” system in the Netherlands. The decision came after over 18 months of testing.

However, a fresh report from Reuters found that officials across Sweden, Finland, Denmark, and Norway are raising concerns about how the system performs in real-world conditions. Some pointed to instances where it appeared to allow speeding, while others questioned how it would perform on icy roads and in harsher driving environments.

Regulators also apparently discussed whether safeguards for keeping drivers attentive could be bypassed, and whether the “Full Self-Driving” label risks giving users a misleading sense of autonomy. However, some officials acknowledged that the system handled complex urban traffic well, suggesting that the discussion is less about rejection and more about whether the tech is ready for broader use under Europe’s stricter standards.

Tesla Pushes EU Approval Ahead Of Hearing

In the lead-up to the hearing, Tesla reportedly reached out to regulators in countries such as Sweden, Finland and Estonia within days of the Dutch approval, in some cases urging them to recognize the decision before reviewing detailed documentation. The company also encouraged owners to voice support, resulting in a wave of emails to regulators that some officials called “inundated” to the process.

In April, CEO Elon Musk said Tesla expects approvals in multiple countries and plans to eventually expand into robotaxi services in Europe. Internally, Tesla is targeting broader EU approval in the second or third quarter of this year, though that timeline depends on how regulators respond after this week’s hearing.

High Stakes EU Review For Tesla FSD

The outcome of the review carries notable implications for Tesla’s Europe strategy. The company is looking to regain momentum in the region after sales fell 27% last year, with FSD seen as a key lever to drive demand and unlock higher-margin software revenue. However, the tech remains classified as a driver-assistance feature, requiring drivers to stay fully attentive at all times.

Tuesday’s hearing is expected to focus on why Dutch regulators approved the system and whether other countries should follow. A decision is unlikely immediately. Under EU rules, approval would require backing from countries representing 55% of member states and 65% of the bloc’s population, with further discussions expected at committee meetings in July and October.

Tesla Semi Momentum Builds 

Apart from regulatory developments, Tesla is also seeing early traction in its commercial trucking business. Over the weekend, Tesla saw fresh momentum in its Semi program, with Forum Mobility confirming a 40-truck order from Big F Transport after a successful demo.

The trucks are expected to operate from a California depot set to go live in early 2027. The update comes days after Tesla said its first Semi rolled off a high-volume production line in Nevada, marking a move beyond pilot production. While adoption is still early, companies like DHL and ArcBest continue to test the truck, with initial trials showing lower fuel costs and energy use of around 1.5kWh to 1.7 kWh per mile.

How Do Retail Traders Feel About TSLA?

On Stocktwits, retail sentiment for Tesla was ‘bullish’ amid a 350%+ surge in 24-hour message volume. 

One bullish user said, “So semitruck delivery is not enough to convince wallstreet? This stock will go parabolic.”

Meanwhile, a separate user said, “the scope and scale for tesla to price in this stock is so much more then most bulls realize. They see upside with taxies and robots I see 100% downside.”

So far this year, TSLA stock has lagged its “Magnificent Seven” peers, making it the group’s second-worst performer, with a 13% decline.    

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: ASTS Stock Hits 2026 Low: Analyst Warns GOOGL Stake Could Shrink To Near Zero With SpaceX IPO