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Tesla Full Self-Driving could soon be allowed in Germany, gov approves legislation aimed at autonomous driving
The national Parliament of the Federal Republic of Germany decided on Thursday to change an existing traffic law that had prohibited vehicles from being engaged in autonomous mode. Drawing on votes from both the Social Democratic Party (SPD) and the Christian Democratic Union (CSU), the Bundestag has agreed to allow fully autonomous driving vehicles to travel on Germany’s streets. The (translated) law reads, in part,
“During vehicle driving, the driver may turn away from traffic and vehicle control by means of highly automated or fully automated driving function… [but must] immediately [assume control] if he recognizes that the conditions for the intended use of the highly or fully automated driving functions no longer exist… even if he does not control the vehicle in the context of the intended use of this function.”
The law provides a balance between driver responsibility in the event of traffic incident and the ability of the the driver to release control of the vehicle to a control system, depending on situation and duration. The driver must retain the capacity to reassume control as well as to deactivate the control system. All vehicles with autonomous driving systems would have a “black box” data storage system, which would assist in determining fault in the event of an accident.
The new German law supersedes the 1968 “Vienna Convention on Road Traffic,” which specified that human drivers must have full control over their vehicle at any time. Of course, at that time of that law’s implementation, autonomous vehicles had not yet been introduced.
Tensions were high immediately preceding the vote, according to Germany’s golem.de newspaper, which described the level of autonomy to be permitted as “highly automated and fully automatic vehicles.” SPD deputy Kirsten Lühmann accusing the body of assigning drivers the roles of “experimental rabbits for new technology.” Stephan Kühn, the Green party deputy, also disagreed with the extent of the law. “It is not enough just to formulate in the justification of the legal text what the driver is allowed to do without worry while the computer is driving the car. This must be re-written into the law itself.”
The SPD defended the amendments as sound and timely.
German Federal Minister of Transport Alexander Dobrindt (CSU) had offered draft legislation for the new law in February, but it received violent criticism and underwent significant revision, particularly around data protection regulations. At the beginning of this week’s debate, he envisioned Germany as having “the most modern road traffic law in the world.” Dobrindt has rationalized the law as providing value added software innovation that could be homegrown in Germany and Europe. With the new systems, he said, will come increased traffic safety, fewer traffic jams, and reduced environmental pollution [emphasis added].
Germany is a forerunner for European autonomous driving, with some sections of public highways already designated as live testing zones. The Institute for the German Economy calculates that Germany has registered 58% of all global patents in autonomous driving since 2010.
The approved revision states that the owner of the car is still liable for actions taken while under autonomous mode, as prescribed by section 7 of the Road Traffic Act (Hazard Liability). Specific German autonomous driving regulations have not yet been established; those will come alongside international regulations and definitions and will likely change, too, as technological development in autonomous driving continues to progress. Like so many in the auto industry today, German engineers, scientists, and regulators are in a race to figure out the details of how autonomous cars will function so that they can be market ready by the early 2020’s.
Of course, Elon Musk, Tesla’s CEO, has stated that his company’s electric vehicles will have autonomous capability by the second half of 2017. The Society of Automotive Engineers has identified different levels of autonomy, ranging from 0 to Level 5, with Level 5 signifying that a vehicle can drive itself at all times under all conditions and need no input from a human. Level 4 autonomy refers to a vehicle that can be autonomous almost all the time, within determined parameters, as seems to be outlined by the Bundestag.
Interestingly, according to Musk’s statements, Teslas may soon be able to approach Level 4. That would make Tesla R&D far ahead of any German innovation currently underway.
With a bicameral parliament, Germany has two chambers: the Bundestag (lower house) and the Bundesrat (Federal Council or upper house). Both chambers can initiate legislation, and most bills must be approved by both chambers, as well as the executive branch, before becoming law. Now that the autonomous driving legislation has been approved by the Bundestag, it will go before the Federal Council. Coalition forces feel confident that this week’s modifications to Dobrindt’s original draft proposal are sufficient to pass through the Bundestrat.
Bitkom CEO Bernhard Rohleder was excited about the law, saying, “The Bundestag has cleared the way for the Automnation Deutschland to be the world leader in autonomous driving.” He acknowledged that changes will occur around liability rules or the use of data. “But we must not make the mistake of trying to settle everything down to the end in a long-term debate, then other countries will create facts and we will have the opportunity to use this technology.”
The first production vehicles equipped with autonomous driving features will be introduced to Germany sometime in 2017. “We can also be innovative in the legal framework and do not need to hide from the Silicon Valley ,” said Ulrich Lange (CSU), a CSU member, argued during the final moments of debate.
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Tesla VP explains latest updates in trade secret theft case
Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.
Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.
Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”
The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.
Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.
Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:
Buyer beware: Matthews International stole Tesla’s DBE technology and is now subject to an injunction and liable for damages.
During our work with Matthews, we caught them red-handed copying our technology—including proprietary software and sensitive mechanical designs—into… https://t.co/Toc8ilakeM
— Bonne Eggleston (@BonneEggleston) March 10, 2026
Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”
Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.
What are Tesla’s Current Legal Options
The case isn’t over—it’s moving to the damages phase. Tesla can:
- Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
- Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
- Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
- Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.
Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.
This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.
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Tesla Cybercab includes this small but significant feature
The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.
Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.
The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.
This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:
The hazard lights button will be used as an emergency stop. Smart pic.twitter.com/vkYBioqmKm
— Whole Mars Catalog (@wholemars) March 10, 2026
We have braille on the interior door releases as well
— Eric (@EricETesla) March 11, 2026
This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.
It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.
The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.
Elon Musk
Tesla and xAI team up on massive new project
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.
Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.
Musk said:
“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”
Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.
The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.
From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.
However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.
Musk maintains that there is no other company on Earth that will be able to do this.
Tesla VP explains latest updates in trade secret theft case
Tesla Cybercab includes this small but significant feature
