Tesla Stock Drops as Europe Delays FSD Scale

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA), the electric-vehicle and driver-assistance software maker, faced a longer wait for broader European FSD approval, with shares at $372.585 at 10.18am ET time on September 25. Reuters reported that an expected authorization vote was absent from regulators’ October agenda. For investors banking on software growth, the obstacle is clear: Tesla cannot turn European demand into subscription revenue everywhere until regulators give it permission.

The supplied report puts December as the next scheduled voting opportunity, with October’s agenda allocating 25 minutes to further discussion. Approval requires support from at least 15 of the bloc’s 27 countries representing 65% of its population. Speed-limit compliance remains a sticking point. Existing national permissions leave Tesla room to operate, but a country-by-country rollout makes expansion more complicated than one European authorization.

The valuation graphic puts Tesla 11.51% above its $334.13 GF Value estimate, suggesting the shares still price in growth beyond that benchmark despite the regulatory uncertainty. A delay does not settle the ultimate approval decision. It does push potential subscription revenue further out. The commercial test comes afterward: how many drivers pay, how long they stay and how much Tesla spends keeping the system compliant.