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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.
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
