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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 stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
