Tesla has replaced the "Full Self-Driving" brand name with "Assisted Driving" for its vehicle systems in Europe after German authorities criticized the original terminology as misleading. The change follows a statement from the German Federal Ministry of Transport, which argued that the system does not take over the entire driving task but rather supports specific functions like accelerating, braking, and steering while requiring the driver to remain attentive at all times.
The U.S. market remains unaffected by this rebranding, where the package continues to be sold as "Full Self-Driving (Supervised)" for a monthly subscription fee of $99. Tesla is currently seeking approvals across Europe, a move that coincides with rising electric vehicle sales on the continent driven by soaring fuel costs linked to the war in Iran. The company's European sales have also shown signs of recovery following a slump in the previous year.
Regulatory scrutiny of the technology has intensified in recent months. Reuters reported that Tesla has pressured automotive regulators in Europe, particularly in the Netherlands, for rapid approval of its systems. According to the report, this pressure led some regulators to reduce the intensity of their safety tests and reviews. In the United States, the National Highway Traffic Safety Administration is investigating whether the system is safe for use in conditions of reduced visibility, such as fog or glaring sun. The agency is also examining whether the system contributed to traffic violations committed by Tesla drivers, some of which resulted in collisions.
Legal challenges to the technology's marketing have also emerged in U.S. courts. In December 2025, a California judge determined that Tesla engaged in deceptive marketing regarding its Autopilot and FSD systems by falsely implying they were fully automated driving systems. Tesla has countersued the California Department of Motor Vehicles in Los Angeles superior court to remove the "false advertiser" label from its record, and that litigation is ongoing.
Despite the regulatory and legal headwinds, Tesla reported 1.48 million active FSD subscriptions in its second-quarter earnings update. The company did not specify how many of those subscriptions originated from free trials or other incentives.