Tesla's plan to test its Full Self-Driving (Supervised), or FSD, technology in Sweden has hit a red light. Officials in Stockholm have rejected the company's request to test the system on its streets, Teslarati reported. It's the latest bump in the road as Tesla tries to expand its driverless technology beyond North America.
What's happening?
Tesla recently asked for permission to test its FSD system on public Stockholm roads. But the city's traffic department turned the company down, citing safety risks to its citizens and infrastructure and "heavy pressure from other ongoing innovation tests."
Kees Roelandschap (@KRoelandschap) posted the city's response on the social platform X. Officials stated: "It is currently not possible to approve the implementation of the test."
Why does this rejection matter?
Tesla isn't the only manufacturer of electric vehicles. In fact, it's not even the largest. In early 2025, BYD Auto Co. became the world's largest EV manufacturer. Still, Tesla remains one of the largest and well-known EV makers.
However, Tesla is aware that its FSD technology needs to be perfected in other areas, hence the need for testing globally. On its website, Tesla shares this warning: "Because every country contains unique infrastructure, driving behaviors, and traffic patterns that Full Self-Driving (Supervised) must adapt to over time, it is essential for drivers using Full Self-Driving (Supervised) in newly eligible countries to be extra attentive and overly cautious."
Testing FSD in other countries will allow Tesla to improve the technology's safety in diverse traffic environments. This could lead to further expansion into other regions to shift them toward cleaner transportation.
Stockholm's snub could delay Sweden's access to Tesla's most advanced driving tech. Without local testing approval, FSD will likely take longer to roll out, limiting the full potential of Tesla vehicles that buyers are already paying for.
Tesla's also had a series of recent setbacks, including sharp sales declines in Europe and protests at Tesla dealerships linked to CEO Elon Musk's involvement in the U.S. federal government and politics, with some consumers viewing any support for Tesla as a seal of approval for Musk's personal views.
Combined with testing rejections, these roadblocks could impact how the public perceives Tesla and EVs as a whole. If fewer people feel confident in making the switch to EVs, it could slow progress toward lower-emission transportation.
What's being done to encourage EV expansion?
Increasing adoption of EVs can decrease dependence on gas and cut down on climate-warming pollution. Despite some hurdles, Tesla has also had a lot of wins and contributions to EV expansion. The Model Y was China's highest-selling SUV in May. Tesla's also expanding its Supercharger network for more convenient, quicker EV charging.
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The U.S. government has also played a role in encouraging more EV sales, offering up to $7,500 in tax credits for qualified models. While the One Big Beautiful Bill may result in a withdrawal of those credits, whether you're interested in a Tesla or not, you have options for making your next car an EV, thanks to a robust market offering increasingly affordable options.
By switching to an EV with zero tailpipe emissions, you won't only be helping the planet but also saving up to $2,200 per year on gas.
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