TLDR
- Melius Research maintains Buy rating on Tesla with $525 price target, citing rapidly advancing driver-assist technology that’s widening the gap with legacy automakers
- Elon Musk says traditional carmakers approaching Tesla about FSD licensing only propose narrow pilot ideas planned years out, which he calls impractical
- Tesla offering Full Self-Driving ride-alongs in Germany, Italy, and France in December as company pushes for European regulatory approval
- Dutch regulator RDW cautions Tesla’s February 2026 FSD approval timeline “remains to be seen” despite drawn-up schedule
- Tesla’s European sales dropped nearly 50% in October compared to previous year while BYD surged over 200%
Tesla’s Full Self-Driving technology is accelerating away from competitors at a pace that has analysts raising price targets and questioning whether traditional carmakers can catch up.
Melius Research analyst Rob Wertheimer said the system’s recent improvements show Tesla pulling further ahead of rivals. The upgrades span from chip performance to tighter hardware-software coordination. Traditional manufacturers have focused on efficiency and cost targets for decades. That approach may leave them struggling to shift to a tech-driven model.
Elon Musk addressed licensing questions on Monday. He said Tesla remains open to sharing its FSD platform with other automakers. The problem is how they approach it. Established car companies typically pitch narrow pilot programs scheduled several years into the future. Musk called these proposals impractical for Tesla’s technology roadmap.
Wertheimer’s analysis suggests many automakers lag several years behind in autonomous design. They may also lack the organizational structures needed to compete at scale. The analyst compared the situation to past transportation disruptions. Older technologies lost relevance quickly once alternatives gained momentum.
Melius maintained its Buy rating on Tesla stock with a $525 price target.
European Push Intensifies
Tesla is ramping up efforts to bring FSD to European roads. The company announced Full Self-Driving ride-alongs in Germany, Italy, and France next month.
The ride-alongs let Europeans experience FSD from the passenger seat during test drives. The software can handle almost all driving scenarios autonomously but requires human supervision.
FSD launched in the US back in 2022. International rollout has proven more challenging.
Tesla posted on X Saturday that it expects Dutch regulator RDW approval by February 2026. The company said it has pushed hard for over a year to ship FSD in Europe.
The regulator responded quickly. RDW said it drew up a schedule for February approval but cautioned the timeline “remains to be seen.” The agency also asked Tesla fans to stop contacting them. Tesla had encouraged European owners to reach out and “express your excitement.”
Testing and Regulatory Hurdles
Tesla has tested FSD on European roads for months. The company posted videos of cars navigating Rome’s streets and circling Paris’s Arc de Triomphe.
Business Insider reported Tesla employees expressed frustration with the extensive testing Dutch regulators require. One employee told officials that FSD approval was “mission critical” to Tesla leadership.
Musk regularly criticizes European regulatory processes. During a July earnings call, he described navigating a “Kafkaesque” labyrinth of regulations. He predicted Tesla’s European sales would surge once regulators approve FSD.
Tesla’s European sales dropped nearly 50% in October compared to the previous year. Data from the European Automobile Manufacturers’ Association shows the steep decline. Chinese EV maker BYD saw sales jump over 200% during the same period.
The sales slump comes from multiple factors. Backlash over Musk’s support for far-right German party AFD hurt the brand. Competition from BYD has intensified across European markets.
Tesla expects RDW approval in February 2026 despite regulatory caution about meeting that deadline.
The post Tesla (TSLA) Stock: Wall Street Says FSD Advances Leave Legacy Automakers Years Behind appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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