Davos 2026: Expect Europe, China to approve Tesla's FSD system next month, says Elon Musk

Elon Musk (AFP image)

Elon Musk expects Tesla to receive approval for its Full Self-Driving (FSD) advanced driver ​assistance system in Europe and China by next month, the ‌billionaire said on Thursday.

The approvals would be a significant step for Tesla as the electric automaker looks to monetize FSD outside the U.S. as a drop in electric vehicle sales have increased pressure ‌to generate revenue from software and services.

"We hope to ​get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing, timing for China," Musk ‍said at his first appearance at the World Economic Forum in Davos.

Shares of the automaker rose about 1.5% after the comments.

Musk has been pitching Tesla as a ⁠company whose growth lies in humanoid robots and self-driving vehicles, even ‍though it makes a big share of its money from the electric-vehicle business, ‌which ‌faces intense competition and brand hit in some markets.

The system, which Tesla markets as Full Self-Driving, is classified as an advanced driver assistance feature that requires drivers to remain attentive, and regulators have scrutinized ⁠it amid concerns ⁠over the ​safety and oversight of automated driving technologies.

Tesla has been seeking approval to roll out FSD system in Europe, where tougher vehicle safety rules ‍and a fragmented regulatory framework have slowed deployment compared with the U.S.

The company reported a second consecutive drop in vehicle deliveries in 2025, ceding ​its position as the largest electric vehicle ‍maker in the world to China's BYD after several years in the ​pole position.