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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 opens new “Cybaer” Engineering Center in Berlin
Tesla opened its Berlin Engineering Center, uniting four sites and 30 labs near Giga Berlin.
Tesla has opened a new engineering hub in Berlin, putting the teams that design and test its European parts about 30 minutes from the factory that builds them.
The Berlin Tesla Engineering Center, or BTEC, opened Wednesday in the Köpenick district. Tesla Europe said on X that the project went from permit to operational in under a year and consolidates four engineering sites and 30 labs onto a single campus. It is the company’s third hub of this kind, after Fremont and Shanghai.
“We’re combining materials, powertrain, vehicle engineering & validation under one roof, enabling a short feedback loop between development & ramp,” Tesla Europe wrote.
Berlin Tesla Engineering Center opens today From permit to operational in under a year, it brings 4 engineering sites onto 1 campus w/ 30 different labs in Köpenick, 30 minutes from Giga Berlin With our 3rd hub of this kind after Fremont & Shanghai, we’re combining materials, powertrain, vehicle engineering & validation under one roof – enabling a short feedback loop between development & ramp — Tesla Europe, Middle East & Africa (@teslaeurope) November 4, 2026
Tesla converted the former production halls of a cable factory for the site. About 250 engineers and technicians are starting there, most of them relocated from existing Tesla facilities such as Tilburg in the Netherlands. Tesla has already applied for approval of a second phase that would take the headcount to roughly 500, and it put the total investment at €100 million.
The labs cover battery cells, motors, materials and complete vehicles, and a large hall is set aside for safety testing of components, including airbags. During the opening, staff demonstrated a pedestrian leg impact test on the front of a Tesla using a catapult rig, Tagesspiegel reported. The center’s logo is a cubist Berlin bear that employees call the “Cybaer.”
Tesla said its Berlin design and engineering teams already contributed to the Model Y, Semi and Roadster, and that the work continues at BTEC. The center will handle technical problem solving for Giga Berlin in Grünheide while also developing and validating parts for vehicles built in China and the United States.
“We came here to stay,” BTEC head Brückner told dpa. “We serve all of Europe via Gigafactory Berlin-Brandenburg.” He said a site close to the plant was a priority, and that the old industrial building allowed Tesla to move quickly.
That proximity matters more now that Giga Berlin is growing again. In June, Tesla said it would raise Model Y output at the plant to 7,500 vehicles per week and hire 1,000 more workers after a record first quarter of more than 61,000 units. The factory recently built 7,000 Model Ys in a single week for the first time. Tesla also more than doubled the planned 4680 cell capacity at the site to 18 GWh per year in May, and has talked about eventually taking Grünheide to one million vehicles annually.
Sales are giving Tesla reason to invest. KBA data released the same day showed Tesla’s German registrations nearly quadrupled year over year in October to 2,932 units, bringing the total for the first ten months of 2026 to 47,742.
Ferrari’s first electric vehicle, the Luce, is fully sold out for 2027, according to CEO Benedetto Vigna.
Presenting third-quarter results, he stated: “Everything we plan to sell next year is already fully allocated. Client test drives, scheduled for next year, will help further boost demand. We have no critical issues, neither on manufacturing nor on the demand side. Obviously, the car is more complex because it has many new parts and many new technologies.”
First customer deliveries are expected before the end of 2026, with the model already commanding waitlists despite a turbulent debut.
The Luce is a five-seat, four-door liftback saloon—the longest Ferrari ever produced—powered by four electric motors producing approximately 1,035 horsepower.
It features an 800-volt architecture, a 122-kWh battery, a claimed WLTP range of around 329 miles, 0-62 mph acceleration in 2.5 seconds, and a starting price near €550,000 in Europe (roughly $560,800–$615,000 in the U.S. depending on configuration).
Developed in collaboration with Jony Ive and Marc Newson’s LoveFrom studio alongside Ferrari’s own Centro Stile, it represents a deliberate departure from the brand’s traditional mid-engine sports cars toward a more spacious, grand-touring format.
Its exterior has proven deeply polarizing. Unveiled in Rome in May 2026, the design features smooth, sweeping surfaces, a large glass roof, and restrained detailing that critics described as bland, generic, or more reminiscent of an Apple product or mass-market EV than a Ferrari.
Ferrari unveils its Luce EV, and its reception has been a disaster
Online reactions included memes comparing it to a Nissan Leaf or Polestar, while former Ferrari chairman Luca di Montezemolo publicly warned of “the destruction of a myth” and suggested the prancing horse logo be removed. Italian politicians and longtime owners joined the chorus of disappointment, and Ferrari’s shares dropped roughly 8% in a single day, erasing billions in market value.
Design experts noted the absence of the brand’s signature tension, aggression, and emotional drama.
Yet the controversy has not translated into weak demand among the ultra-wealthy clientele who actually buy Ferraris. Production volumes remain tightly limited, as reports suggest fewer than 500 units in the current year and a longer-term pace of roughly 600 annually through 2030, preserving exclusivity.
One early chassis sold for $40 million at auction. Vigna has indicated that seeing the car in person, along with upcoming client test drives, is expected to strengthen rather than weaken interest. Ferrari aims for fully electric models to comprise 20 percent of its lineup by 2030, with a second EV now delayed to 2028.
For a brand defined by scarcity and desirability, the Luce’s sell-out status suggests that among those who can afford it, the polarizing design has not proven to be a commercial liability.
Tesla and SpaceX shares fell on Wednesday after Democrats swept both chambers of Congress. The decline stood out as broader market securities recovered and turned positive, while both of Musk’s publicly traded companies lagged.
CEO Elon Musk already joked about the unsuccessful campaigning for the Republicans, but now the new party will make pretty drastic changes to how it handles Tesla and SpaceX, and those companies will adjust their outlook.
Let’s take a deeper look.
Tesla ($TSLA)
Tesla shares traded lower during the regular session after Democrats secured both the House and Senate. The stock was down 2.32 percent at around 1:45 p.m. on the East Coast, trading at around $389.30.
The pressure is tied to more than the raw scale of Musk’s political spending, estimated at $450–474 million this cycle with roughly $224 million directed at Texas. In that state, Tesla now faces a Democratic governor and a Democratic senator after Gina Hinojosa unseated Greg Abbott and James Talarico defeated Ken Paxton.
The Austin Gigafactory, Robotaxi pilot programs in multiple Texas cities, and any related AI compute expansion sit under a new state executive who campaigned against certain corporate subsidies and floated a moratorium on new data-center construction.
Federally, Democratic control of key committees opens the door to deeper examination of Tesla’s autonomous-driving safety record, federal energy-storage and manufacturing incentives, and the national-security implications of any combination with SpaceX.
Investors are also weighing whether the company’s historically close alignment with the prior Republican leadership will invite slower permitting, additional hearings, or tighter rules on Full Self-Driving deployment.
For Tesla, the political shift adds near-term friction around state permitting and federal regulatory approvals for autonomy and energy storage. A potential merger with SpaceX may face slower review even if it proceeds.
Core growth drivers such as vehicle deliveries, energy deployments, and robotaxi rollout remain intact, yet the stock now carries a higher political-risk premium that could weigh on valuation until the company demonstrates workable relationships with the new Texas leadership and congressional majorities.
SpaceX ($SPCX)
SpaceX shares also declined in live trading on November 4 following the Democratic midterm sweep. The stock traded at $134.97, down 4.49 percent. The drop occurred even as broader indexes stabilized, highlighting a company-specific reaction to the election outcome.
Musk’s large contributions, concentrated in Texas races that both companies lost, place SpaceX’s Starbase launch facility and headquarters under a new Democratic governor.
At the federal level, Democratic control of Congress enables greater scrutiny of NASA, the Department of Defense, and other contracts that support a meaningful share of revenue, along with reviews of Starlink national-security uses and any Tesla merger. Analysts have noted that empowered committees can hold hearings and request documents on these relationships.
For SpaceX, the results raise the risk of delayed contract awards, higher compliance costs, and tighter constraints on AI and satellite infrastructure expansion, particularly in Texas where a data-center moratorium has been discussed.
A merger with Tesla could encounter political friction that slows integration of launch, connectivity, and autonomy capabilities.
While Starlink growth and launch cadence continue as primary drivers, the company faces a more contested path for federal funding and state-level operations, requiring management to rebuild ties with the new congressional majorities and Texas leadership to limit the overhang.
Tesla opens new “Cybaer” Engineering Center in Berlin
Ferrari Luce sold out for 2027 after design controversy
