TLDRTesla stock falls 5.92% as Europe weighs broader approval for supervised FSD.Wider EU FSD access could expand Tesla’s recurring high-margin software revenue.Tesla says FSD recorded 4.1 times fewer collisions across five European markets.European approvals are growing, but regulators still question Tesla’s safety data.Profit pressure and driverless competition remain key risks for Tesla’s FSD push.Tesla (TSLA) stock fell sharply as the company promoted European FSD safety data before a wider regulatory decision. TSLA closed at $354.08, down 5.92%, then slipped another 0.34% after hours to $352.89. However, broader European approval could expand Tesla’s software business and strengthen its regional growth strategy.Tesla, Inc., TSLATesla Pushes FSD Safety Case Across EuropeTesla said supervised Full Self-Driving recorded fewer collisions than manual driving across five approved European markets. The company based its findings on more than 100 million kilometers of driving data collected between April and August. Tesla reported three highway collisions with FSD engaged and nine incidents on non-highway roads.By comparison, manually driven Tesla vehicles recorded 137 highway collisions and 490 incidents on other roads. Tesla said the results showed a 4.1-times lower collision rate when drivers used supervised FSD. Meanwhile, the company released an open-source safety dashboard after sharing related information with European regulators in April.Regulatory progress has expanded beyond one country during recent months. The Netherlands granted provisional approval in April, while Belgium, Denmark, Estonia, and Lithuania later followed. That momentum gives Tesla a stronger platform before regulators consider broader approval across the European Union.European Approval Could Expand Tesla Software RevenueA wider FSD rollout could give Tesla access to a larger European market for paid software features. Paid FSD users increased from 950,000 last year to 1.48 million, showing stronger adoption across Tesla’s customer base. Therefore, wider European access could support recurring revenue and improve monetization beyond vehicle sales.Tesla entered this regulatory push after reporting stronger second-quarter vehicle deliveries and revenue. Deliveries reached a record 480,126 units, representing 25% growth from the same period last year. Revenue climbed 26% to $28.2 billion, while trailing twelve-month revenue surpassed $100 billion for the first time.Europe remains important because Tesla has faced weaker vehicle sales across several regional markets. However, recent signs suggest the decline has started easing as the company rebuilds demand. FSD approval could strengthen that recovery by adding another paid product to Tesla’s European offering.Profit Pressure and Regulatory Questions RemainTesla still faces questions about the reliability and presentation of its FSD safety comparisons. Reuters previously reported that experts challenged earlier statistics Tesla presented to European regulators. Those concerns could influence how authorities assess the latest data before granting wider approval.At the same time, Tesla’s core profitability remains under pressure despite stronger deliveries and revenue. Second-quarter operating income fell 57%, while capital spending more than doubled to a record $5.8 billion. Free cash flow also turned negative, increasing the importance of higher-margin software and autonomous driving products.Competition remains another challenge as other companies expand fully driverless ride-hailing services. Waymo and Baidu’s Apollo Go have accumulated more experience operating vehicles without human supervision. Tesla’s supervised FSD approval would mark progress, but it would not erase the current autonomy gap. The post Tesla (TSLA) Stock: Drops as Europe FSD Approval Could Unlock Major Upside appeared first on Blockonomi.