Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk‘s $1 trillion pay package and ambitious 10 million active Full Self-Driving (FSD) subscriber goal could face possible hurdles as EU regulators have reportedly expressed concern about the technology following its approval.
Emails Express Concern Over FSD
According to a Reuters report on Tuesday, citing emails it accessed, regulators in the Netherlands, as well as Scandinavian countries like Sweden, Denmark, Norway and Finland, have flagged concerns about the technology’s safety in icy road conditions, as well as its tendency to speed up and its ability to circumvent the prevention of phone use.
Tesla did not immediately respond to Benzinga‘s request for comment.
The regulators also raised concerns about Tesla asking its supporters to urge the regulators to approve the technology in the region, the report said. A committee is set to hear from Dutch officials from the Netherlands Vehicle Authority (RDW) about the reasons why the Supervised FSD technology was approved.
For an EU-wide approval, the technology must secure a nod from committee members representing 55% of EU member states. Additionally, it would also require 65% of the bloc’s population to vote “yes,” the report said. Following RDW’s approval, Tesla lobbyists were urging countries like Finland, Estonia and Sweden to approve the tech, the report said.
Elon Musk’s Tesla Pay Package, Cybercab Ramp
In November last year, Tesla shareholders approved a $1 trillion pay package for Musk, which is contingent on Tesla achieving milestones like 10 million active FSD subscriptions as well as 1 million Tesla robotaxis on the road, among other milestones like Tesla delivering over 1 million robots by 2035.
Meanwhile, Tesla has kept up with Musk’s April timeline for the production of the Cybercab at the automaker’s Gigafactory in Texas. The Cybercab could prove to be an important step in Musk’s driverless goals, but the Robotaxi service is progressing at a slow pace, with over 20 unsupervised Robotaxis in Austin and three each in Dallas and Houston.
Tesla’s European Rebound
Tesla also showcased growth in multiple markets across Europe, with countries like France recording a growth of 112%, while the Netherlands recorded a 23% growth in sales. However, the automaker’s sales were also down 47% in Spain and 61% in Norway.
According to Benzinga Edge Rankings, Tesla offers satisfactory Momentum, but poor Value. It also provides a favorable price trend in the Long term.
Price Action: TSLA was down 0.16% at $391.89 during overnight trading.
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