On September 8, 2026, Reuters reported that Slovenia approved Tesla, Inc. (NASDAQ:TSLA)’s FSD Supervised driver-assistance system for its roads. Slovenia became the sixth European country to clear the software ahead of a potential European Union-wide vote that Tesla expects as early as October 6.
The Netherlands was the first EU country to provisionally approve FSD in April, followed by France. It raised safety concerns in July and has since begun testing two FSD-equipped vehicles following what its transport minister called a “constructive exchange” with CEO Elon Musk.
Bull Case
Slovenia’s approval of Tesla, Inc. (NASDAQ:TSLA)’s regulatory momentum in Europe. Slovenia became the sixth European country to approve Tesla’s FSD Supervised system, while the EU could hold a vote on broader adoption within weeks. A favorable EU-wide decision could allow Tesla to expand FSD across the bloc without negotiating separate approvals in every country.
Tesla also enters this expansion with growing vehicle deliveries and FSD adoption. Second-quarter deliveries rose 25% year over year to 480,126 vehicles, beating analyst estimates. Active FSD subscriptions reached 1.48 million, up 56% year over year. The growing installed base and subscription count give Tesla a larger pool of potential European FSD users as regulatory approvals expand.
France’s shift toward testing FSD-equipped vehicles suggests Tesla can overcome regulatory resistance. France raised safety concerns in July but moved toward testing the system just weeks later. If Tesla continues winning over skeptical regulators, the company could reduce regulatory barriers and expand FSD access across more major European markets.
Bear Case
European approval does not make FSD fully autonomous. Tesla, Inc. (NASDAQ:TSLA)’s FSD Supervised system still requires drivers to remain attentive and ready to intervene. So regulators have approved a supervised driver-assistance system rather than Tesla’s vision of fully autonomous driving. That distinction could limit the technology’s near-term revenue potential.
Regulatory authorities could still restrict Tesla’s FSD rollout if safety concerns emerge. Slovenia’s approval adds another country to Tesla’s European footprint. However, regulators retain oversight of the technology. Any safety incident or regulatory reversal could slow Tesla’s expansion and weaken customer confidence in FSD.
Tesla still needs EU approval to unlock the full European opportunity. Six country-level approvals represent progress, but the firm must pursue individual approvals if the potential EU-wide vote faces delays or fails to produce bloc-wide clearance. That outcome could slow FSD use and limit the near-term financial benefit from Tesla’s regulatory progress.
Hedge Fund Sentiment
Tesla, Inc. (NASDAQ:TSLA)’s hedge fund count slipped to 116 in the second quarter from 123 in the first, even as combined position value rose to $23.79 billion from $23.09 billion, according to Insider Monkey’s database. Alphabet, whose Waymo unit is Tesla’s chief global rival in autonomous driving, saw both measures move higher, with holders climbing to 275 from 265 and position value jumping to $93.74 billion from $72.41 billion.
Conclusion
Tesla’s sixth European approval strengthens its push to expand its software business. Active FSD subscriptions grew 56% year over year to 1.48 million, showing strong demand that could support wider rollout as more regulators approve the technology. However, FSD Supervised still requires driver attention. So Tesla must secure EU approval while proving its safety to regulators. Expansion across Europe offers a major software growth opportunity, but Tesla must turn these regulatory wins into steady FSD adoption and higher revenue to boost shareholder returns.
READ NEXT: Cook Hands Ternus Apple (AAPL) that Still has to Prove itself on AI and Meta’s $18 Billion Settlement Could Be the Green Light for a New AI Push.
