Tesla and other companies are actively developing self-driving technologies and driverless ride-hailing platforms, and with President-elect Donald Trump’s transition team already focused on autonomous vehicles, the tech is highly expected to be a major theme in 2025.
According to a Reuters Breakingviews prediction report on Monday, Trump’s moves to minimize regulations surrounding autonomous vehicles and create a federal framework for the technology are expected to supercharge the industry—as increased competition emerges in the U.S. and beyond.
With Tesla CEO Elon Musk also set to play a large role in Trump’s administration, heading up the Department of Government Efficiency (DOGE), the company’s own developments in the sector could also stand to benefit substantially. Reuters also predicts that self-driving pilots could expand under the administration, especially as developers aim to increase the amount of data used to train their systems.
READ MORE ON SELF-DRIVING REGULATIONS: U.S. agency proposes rules for self-driving vehicle incident reporting
Last month, the Trump transition team said that it was already aiming to create a federal self-driving vehicle framework. Additionally, the team earlier this month was reported to be ditching federal requirements on automated driving tech crash reporting, coming as one example of the administration’s aims to streamline regulatory processes in the industry.
-->Internationally, the Society of Automotive Engineers (SAE) categorizes vehicle automation into five automation levels, which are generally adopted in conversations about robotaxis in the U.S. market as well. You can see these categories below, with Level 3 and above generally considered to be full automation, at least at times, while Level 2 and below are considered partial automation.
Credit: SAE International
According to the data firm Canalys, just 5.5 percent of vehicles sold this year have included Level 2 or more assistance features, such as cruise control and automated lane changes. By 2025, however, Citi research has suggested that models in China below 200,000 yuan (about $28,000) will have these features, playing a major role in consumer demand.
In China, at least 19 companies are currently testing fully autonomous vehicles, and Goldman Sachs expects the country to see as many as 90 percent of consumer sales to have features of Level 3 autonomy or greaterby 2040, compared to just 65 percent in the U.S.
While these technologies are emerging, McKinsey predicts that self-driving could become a $400 billion industry by 2035. Google parent company Alphabet runs Waymo, a Level 4 driverless ride-hailing service that already offers paid rides, while others, including Pony AI and Baidu also offer rentable self-driving vehicles in select areas.
BYD has invested $14 billion into self-driving, Toyota has around 1.7 trillion yen ($11.3 billion) going toward software, while Volkswagen has invested $700 million into China’s Xpeng Motors. Li Auto and Xiami are also considered potential competitors in these spaces, and 2025 could prove a big year for commercial self-driving hopefuls.
Tesla’s Supervised FSD program, Cybercab unveiled
Meanwhile, Tesla isn’t yet operating a paid ride-hailing service, though it gathers data through owner use of its Supervised Full Self-Driving (FSD) software. Tesla has touted the potential scalability of its Supervised FSD in the past, given that it’s available at least in some form in all of the company’s vehicles.
-->Musk has also regularly talked about a future in which owners of its vehicles could use an Unsupervised FSD to generate money by giving robotaxi rides while not normally in use.
On that theme, Tesla unveiled the Cybercab in October, a fully autonomous, two-seat vehicle with no pedals, set to eventually make it to the market as a driverless ride-hailing vehicle. It’s also set to be equipped with wireless charging and make use of an automated cleaning robot, offering top-to-bottom autonomy for owners.
MORE ON FSD SUPERVISED: Watch Tesla’s FSD v13.2 navigate away from park in a tricky situation
Tesla skeptics, Waymo’s driverless ride-hails, GM’s Cruise drives into the sunset
Despite the unveiling, some have shared skepticism around how long the vehicles could take to reach the market, especially given that production isn’t set to begin until 2026 with commercial deliveries aiming for “before 2027,” according to Musk during the October 10 “We, Robot” unveiling event.
On Monday, analyst Gary Black also predicted that fewer than 50 percent of Tesla owners would join the company’s robotaxi fleet, while a Guggenheim researcher in October said Tesla was “extremely unlikely” to reveal a credible path to robotaxi commercialization in the next 12 to 24 months.
-->Others like Waymo are some of the first companies operating paid driverless ride-hails, and the Google-run firm said in August that its robotaxis were already giving 100,000 paid self-driving rides per week. Meanwhile, General Motors (GM) announced this month that it will officially end funding for its commercial self-driving arm Cruise, after one of the company’s driverless vehicles last year ran over and pinned a pedestrian in San Francisco.
ALSO RELATED:
- Tesla China FSD approval expected by end of 2024: Musk
- Waymo to test self-driving vehicles in another country in 2025
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
California regulators add new reporting requirements for self-driving cars
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Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Tesla’s Full Self-Driving (Supervised) program is accelerating across Europe, with Spain emerging as a key testing hub under the country’s new ES-AV framework program.
Based on information posted by the Dirección General de Tráfico (DGT), it appears that Tesla is already busy testing FSD in the country.
Spain’s ES-AV framework
Spain’s DGT launched the ES-AV Program in July 2025 to standardize testing for automated vehicles from prototypes to pre-homologation stages. The DGT described the purpose of the program on its official website.
“The program is designed to complement and enhance oversight, regulation, research, and transparency efforts, as well as to support innovation and advancements in automotive technology and industry. This framework also aims to capitalize on the opportunity to position Spain as a pioneer and leader in automated vehicle technology, seeking to provide solutions that help overcome or alleviate certain shortcomings or negative externalities of the current transportation system,” the DGT wrote.
The program identifies three testing phases based on technological maturity and the scope of a company’s operations. Each phase has a set of minimum eligibility requirements, and applicants must indicate which phase they wish to participate in, at least based on their specific technological development.
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Tesla FSD tests
As noted by Tesla watcher Kees Roelandschap on X, the DGT’s new framework effectively gives the green flight for nationwide FSD testing. So far, Tesla Spain has a total of 19 vehicles authorized to test FSD on the country’s roads, though it would not be surprising if this fleet grows in the coming months.
The start date for the program is listed at November 27, 2025 to November 26, 2027. The DGT also noted that unlimited FSD tests could be done across Spain on any national route. And since Tesla is already in Phase 3 of the ES-AV Program, onboard safety operators are optional. Remote monitoring would also be allowed.
Tesla’s FSD tests in Spain could help the company gain a lot of real-world data on the country’s roads. Considering the scope of tests that are allowed for the electric vehicle maker, it seems like Spain would be one of the European countries that would be friendly to FSD’s operations. So far, Tesla’s FSD push in Europe is notable, with the company holding FSD demonstrations in Germany, France, and Italy. Tesla is also pushing for national approval in the Netherlands in early 2026.
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Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise.
Tesla’s Full Self-Driving (Supervised) software continues its rapid evolution, with the latest V14.2.1 update drawing widespread praise for its smoother performance and smarter decision-making.
Videos and firsthand accounts from Tesla owners highlight V14.2.1 as an update that improves navigation responsiveness, sign recognition, and overall fluidity, among other things. Some drivers have even described it as “more alive than ever,” hinting at the system eventually feeling “sentient,” as Elon Musk has predicted.
FSD V14.2.1 first impressions
Early adopters are buzzing about how V14.2.1 feels less intrusive while staying vigilant. In a post shared on X, Tesla owner @LactoseLunatic described the update as a “huge leap forward,” adding that the system remains “incredibly assertive but still safe.”
Another Tesla driver, Devin Olsenn, who logged ~600 km on V14.2.1, reported no safety disengagements, with the car feeling “more alive than ever.” The Tesla owner noted that his wife now defaults to using FSD V14, as the system is already very smooth and refined.
Adverse weather and regulatory zones are testing grounds where V14.2.1 shines, at least according to testers in snow areas. Tesla watcher Sawyer Merritt shared a video of his first snowy drive on unplowed rural roads in New Hampshire, where FSD did great and erred on the side of caution. As per Merritt, FSD V14.2.1 was “extra cautious” but it performed well overall.
-->Sign recognition and freeway prowess
Sign recognition also seemed to show improvements with FSD V14.2.1. Longtime FSD tester Chuck Cook highlighted a clip from his upcoming first-impressions video, showcasing improved school zone behavior. “I think it read the signs better,” he observed, though in standard mode, it didn’t fully drop to 15 mph within the short timeframe. This nuance points to V14.2.1’s growing awareness of temporal rules, a step toward fewer false positives in dynamic environments.
FSD V14.2.1 also seems to excel in high-stress highway scenarios. Fellow FSD tester @BLKMDL3 posted a video of FSD V14.2.1 managing a multi-lane freeway closure due to a police chase-related accident. “Perfectly handles all lanes of the freeway merging into one,” the Tesla owner noted in his post on X.
FSD V14.2.1 was released on Thanksgiving, much to the pleasant surprise of Tesla owners. The update’s release notes are almost identical to the system’s previous iteration, save for one line item read, “Camera visibility can lead to increased attention monitoring sensitivity.”
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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
Tesla Full Self-Driving (FSD) testing gains major ground in Spain
Tesla FSD V14.2.1 is earning rave reviews from users in diverse conditions
