Summary of Key Points
There has been new progress regarding the approval of Tesla's supervised autonomous driving assistance system, FSD (Full Self-Driving), in Europe: Finland, a small Nordic country, is considering recognizing the temporary license for FSD issued by the Netherlands in April this year, before the EU's unified vote in October. However, Finland is still reviewing three key issues: the speed at which drivers need to take over control, the reliability of overtaking in low visibility conditions, and the speed deviation feature. European countries have divided opinions on FSD, and there are no unified rules at the EU level; the progress of FSD varies globally. The United States uses it most extensively, but there are many accidents associated with it, while China is still in the early stages of testing. FSD is crucial for Tesla's software revenue and its Robotaxi (driverless taxi) plans, as well as a new selling point to counter pressure on sales in Europe.
1. Why Does Finland Want to Approve FSD Early? Three Key Issues
Finland is not directly allowing FSD on the roads but is considering recognizing the temporary license issued by the Netherlands, which was the first country in Europe to do so. However, there are three main concerns:
- Driver Takeover Speed: FSD allows drivers to not always hold the steering wheel, but how quickly can drivers take over control if the system encounters a problem? For example, if the system is controlling the steering wheel and the driver needs to put their hands back, what if the road conditions are complex and it's too late?
- Overtaking in Low Visibility: Many roads in Finland have many bends and poor visibility (with speed limits of 60-100 km/h). Is it reliable for FSD to overtake in such conditions, relying on cameras to recognize the road?
- Speed Deviation Feature: FSD can operate at speeds 50% above the limit (for example, 90 km/h instead of 60 km/h). Although it doesn't always reach the upper limit, it could still result in speeding. Sweden has explicitly opposed this feature, arguing that it undermines the authority of traffic rules.
Finland states that its overall view on FSD is positive, but it emphasizes that it is not fully autonomous and must be supervised by a human. If additional information from Tesla is provided by summer, Finland might make a decision before the EU vote.
2. Divided Opinions Among European Countries: Some Allow, Some Oppose
European countries have very different attitudes towards FSD:
- Netherlands: The first to grant a temporary license and has conducted 3,000 hours of testing along with 1.8 million kilometers of road data validation, monitoring the system's performance monthly (more stringent than the usual annual check). Fourteen thousand Tesla cars in the Netherlands are using FSD, with no serious accidents.
- Sweden: Strongly opposes the speed deviation feature and requires Tesla to remove it before allowing FSD to be promoted within the EU.
- Denmark: Places the responsibility on the driver; the system can exceed the speed limit, but the driver must still follow the rules.
- Estonia/Belgium: Following the Netherlands' lead, they allow FSD to be used or tested, while acknowledging that speeding is a concern.
- European Transportation Safety Committee (ETSC): Worries about drivers becoming overly reliant on FSD and calls for caution.
The EU vote will take place in October. If the EU ultimately rejects the license, the Dutch temporary permit will expire after six months, and any other countries' approvals will also be revoked.
3. Why Is European Approval Slower than in the United States? Different Regulations
The regulatory approaches in Europe and the United States are completely different:
- Europe: Certification before deployment. Vehicles/parts must pass official safety and environmental certifications (called "type approval") to be sold. The European version of FSD differs from the American version due to stricter safety and environmental requirements, and software functions have been adjusted accordingly.
- United States: Primarily self-certification by companies. Tesla can install FSD on cars and sell them first, with regulatory agencies (such as NHTSA) checking during use. This is why FSD is widely used in the US, but there are many accident investigations (e.g., NHTSA has investigated 2.88 million Tesla FSD-related accidents).
The Dutch license allows "temporary permission for new technology," allowing technology that does not fully comply with current rules to be on the road, as long as it proves to meet safety and environmental standards. Does Finland want to bypass the EU vote by using the Dutch approval? Not exactly; it's more about using the Dutch result temporarily before the EU makes a decision, but ultimately, the EU's decision will prevail.
4. Global Progress of FSD: Widely Used in the US but with Issues, Limited Testing in China
The progress of FSD varies globally:
- United States: The largest market, but with the most controversies. It has entered widespread use, and regulatory agencies (such as NHTSA and NTSB) frequently investigate accidents (e.g., a recent Model 3 accident in Texas where the driver claimed to have used FSD, while Tesla said the driver pressed the accelerator).
- China: Limited gray-box testing. Last year, it was reported that about 5,000 cars were tested with FSD, but the official website has not officially launched the service, and the purchase option is still available for 64,000 yuan.
- Australia/New Zealand: The first market to adopt FSD for right-hand drive vehicles. They started using it in September, indicating that Tesla can adapt to different steering wheel positions and driving habits.
- Other Countries: Canada, Mexico, South Korea, etc., also use FSD, but it must be adapted to local regulations (e.g., road markings and speed limit recognition).
Each market faces unique challenges: China has complex urban traffic, Europe has strict laws, and the US deals with issues of liability in case of accidents.
5. How Important is FSD for Tesla?
FSD is not just a feature; it is a critical component for Tesla's revenue and future plans:
- Software Revenue: Elon Musk stated that starting in February this year, FSD will only be available as a subscription service (monthly fee) rather than a one-time purchase. This provides stable recurring income and can boost profits.
- Robotaxi Plans: Tesla has already deployed driverless taxis in Austin, Texas (about 50 vehicles), and plans to expand this in Europe. FSD is essential for developing advanced autonomous driving capabilities; if approved in Europe, it will pave the way for applying for more advanced autonomous driving licenses.
- European Sales Pressure: Tesla faces sales pressure in Europe (market share has halved), and the success of FSD could attract customers and compete with local electric vehicle brands (such as Volkswagen and Stellantis).
Therefore, the European approval process is not just about whether FSD can be used; it is a crucial step for Tesla's future business.
Next Steps
The EU Technical Committee will continue to discuss FSD on June 30, with a vote scheduled for October. If Finland approves FSD in advance, it may influence the EU's decision. If the EU rejects it, the Dutch temporary license will expire, and any other approvals will also be revoked. Whether Tesla can launch FSD in Europe depends on the outcomes of these discussions in the coming months.