Musk Says FSD Drives Tesla Demand as EU Approval Push Continues

Tesla CEO Elon Musk said Wednesday that demand for the company’s vehicles exceeds its production capacity, with Full Self-Driving (FSD) the biggest driver of buyer interest as Tesla works to raise output and expand the software’s approval in more markets.

Musk said no vehicle currently on the market competes with Tesla on FSD. He said the company is increasing production and working to deliver more vehicles while pursuing broader approval for the feature.

FSD has been approved in several European countries, Musk said during Tesla’s earnings call. The company is seeking approval across the European Union. Musk said a decision could come within a few months, though the process could extend into the first quarter of 2027.

Tesla does not control the approval timeline, Musk said. He expects FSD eventually to receive approval throughout Europe and in many other countries.