Tesla, Inc.’s TSLA Full Self-Driving (FSD) system recently gained access to public roads in the Netherlands, marking its first approval in Europe and fueling expectations of a broader rollout across the continent. However, not all countries support the expansion. Sweden’s Transport Administration (TRV) has urged the European Union to reject the wider deployment of FSD in its current form.
A key concern for Swedish regulators is Tesla’s “Speed Offset” feature, which allows FSD-equipped vehicles to travel above posted speed limits, per Reuters. While similar functionality exists in conventional cruise-control systems, regulators argue that the risks are greater when the feature is integrated into an automated driving system. In a letter to the EU’s Technical Committee on Motor Vehicles (TCMV), the TRV warned that permitting automated systems to exceed legal speed limits routinely could undermine traffic laws and reduce the intended safety benefits of vehicle automation.
Beyond the speed-related issue, European authorities have also raised concerns about FSD’s performance in challenging winter conditions, particularly on snow-covered roads, as well as the potentially misleading nature of the “Full Self-Driving” name. These concerns come as the TCMV prepares to vote on June 30 on whether to extend the Dutch approval across the European Union.
The TRV does not have the authority to determine Sweden’s position in the European committee vote. That role is held by the Swedish Transport Agency (STA), which acts as the nation’s vehicle type-approval authority.
Per Reuters, the STA has been engaged in discussions with both Tesla and the Dutch road authority, RDW, regarding the matter. One reported meeting between Tesla and regulators lasted about two hours on June 4. Per the STA, talks are still ongoing. While the agency has not yet disclosed how Sweden intends to vote, it noted that the concerns highlighted by the Transport Administration continue to be considered as part of its assessment process.
Despite the opposition, Tesla achieved a significant milestone when Dutch regulators approved FSD for use on public roads in April. Since then, the technology has also been introduced in Belgium, Denmark, Lithuania and Estonia, while approval remains under review in Greece. Although Greek officials criticized Tesla for relying on North American data, they acknowledged that FSD could potentially lead to a substantial reduction in traffic accidents.
Tesla maintains that the Speed Offset feature does not compromise safety because drivers remain responsible for the vehicle and can intervene at any moment. Swedish regulators, however, believe this safeguard is insufficient to address the risks associated with automated speeding.
The European version of FSD already differs from the U.S. version. Instead of driving profiles such as “Sloth” and “Mad Max,” European users can adjust settings through “Max Speed” and “Max Speed Offset” options. The system also handles uncertain speed limits differently, displaying an estimated limit accompanied by a question mark when it lacks definitive information. Additionally, the interface labels the system as “FSD (Supervised)” rather than “Full Self-Driving,” likely to reduce the possibility of drivers misunderstanding the technology’s capabilities.
TSLA’s Zacks Rank & Key Picks
Tesla currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELHY, Douglas Dynamics, Inc. PLOW and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 77.1% and 40.3%, respectively. The EPS estimate for 2026 and 2027 has improved 18 cents and 7 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.6% and 20.4%, respectively. The EPS estimate for 2026 has improved 12 cents over the past 60 days, while the EPS estimate for 2027 has improved a penny over the past 30 days.
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