Tesla (TSLA) Hits a European Milestone, Yet Stock Slips 1% on Geopolitical Jitters

TLDR

• Dutch regulator RDW approved Tesla’s Full Self-Driving Supervised software after 18 months of testing — the first such approval in Europe.
• Tesla stock fell around 0.9% to $345.81 in early Monday trading despite the FSD news.
• The drop was driven by geopolitical pressure after President Trump announced a U.S. Navy blockade of the Strait of Hormuz, pushing oil prices up 7% above $102/barrel.
• The EU version of FSD Supervised differs from the U.S. version, with stricter safety requirements under EU vehicle approval standards.
• Tesla stock is down roughly 22% year to date and has fallen for eight consecutive weeks.

Tesla (TSLA) stock slipped Monday morning even as the company notched a meaningful regulatory win in Europe, with broader market pressure taking center stage.

The stock was down about 0.9% in early trading to $345.81. The S&P 500 and Dow futures were also in the red, falling 0.6% and 0.5% respectively.

Tesla, Inc., TSLA

The sell-off had little to do with Tesla specifically. President Trump announced the U.S. Navy would blockade the Strait of Hormuz after peace talks with Iran broke down over the weekend. Oil markets moved fast — benchmark crude jumped 7%, crossing $102 per barrel.

That kind of macro shock tends to drag on growth stocks, and Tesla was no exception.

The irony is that Tesla actually had good news to share on Sunday. The Netherlands’ vehicle authority, RDW, cleared Tesla’s Full Self-Driving Supervised software for use on Dutch highways and city streets. It marks the first time any European regulator has approved autonomous vehicle technology for road use.

RDW said the approval came after more than 18 months of testing. The agency stated that “proper use of this driver assistance system makes a positive contribution to road safety.”

It also confirmed it would submit an application for the technology to be recognized across the wider EU.

EU Version Is Not the Same as U.S. FSD

One detail worth flagging: RDW was clear that the European version of FSD Supervised is not directly comparable to what Tesla offers in the U.S. EU safety standards are stricter, meaning the software has been adapted to meet those requirements.

Tesla said it plans to roll out FSD Supervised in the Netherlands shortly and expects to expand to more European countries “soon.”

Cantor Fitzgerald analyst Andres Sheppard called the approval “material,” noting it’s the first country in Europe to grant this kind of regulatory green light. He has a Buy rating and a $510 price target on the stock.

Sales Recovery and Upcoming Earnings

Tesla’s European sales had been under pressure — the company saw demand slip following backlash linked to CEO Elon Musk’s political activity and an aging EV lineup. February marked the first month of European sales growth in over a year, offering a tentative sign that things may be stabilizing.

FSD expansion is tied closely to that recovery story. The technology is central to Tesla’s long-term revenue strategy, with autonomous software and robotaxi operations expected to become a major business line.

Tesla launched its AI-powered robotaxi service in Austin, Texas, in June. Investors are watching for updates on city expansion plans.

Tesla will report first-quarter 2026 earnings on April 22 after market close, where FSD Europe progress and robotaxi updates are expected to be a focus.

Coming into Monday, Tesla stock had fallen for eight straight weeks, dropping roughly 17% over that stretch and 22% year to date.

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