Key Highlights
- Tesla shares gained 0.1% in premarket activity, trading at $321.78 on Thursday morning
- Dutch regulators greenlit FSD but withheld approval documentation, potentially hindering broader EU acceptance
- European Union-wide FSD decision expected in October, with UN alternative pathway available in November
- Company disclosed 1.5 million FSD subscribers by Q2’s conclusion, representing 56% annual growth and approximately $2 billion yearly revenue
- Second quarter earnings per share of $0.33 fell short of $0.50 analyst expectations, despite revenue surpassing forecasts at $28.24 billion
Tesla shares showed modest gains during Thursday’s premarket session as the electric vehicle manufacturer advances efforts to secure regulatory approval for its Full Self-Driving technology throughout European markets, potentially unlocking significant additional revenue opportunities.
Shares climbed approximately 0.1% to reach $321.78 before regular trading hours. Year-to-date performance shows a 29% decline, while twelve-month returns stand at just 1%.
Dutch authorities granted FSD approval earlier in 2025, establishing the Netherlands as the inaugural EU member state to authorize the technology. However, Reuters disclosed that Dutch regulators are maintaining confidentiality around approval documentation, potentially complicating efforts by other European Union nations to replicate this authorization.
Should additional EU member states decline to mirror the Netherlands’ decision, Tesla must navigate approval through the European Commission. The technical documentation would proceed to the Technical Committee on Motor Vehicles for evaluation.
Subsequently, approval requires affirmative votes from 55% of EU nations representing 65% of the bloc’s population to authorize FSD throughout the European Union. This crucial vote is anticipated in October.
Should the European Commission pathway prove unsuccessful, Tesla maintains an alternative route through the United Nations Economic Commission for Europe. A two-thirds supermajority at that level would effectively greenlight FSD across European territories. This backup vote could materialize in November.
Subscription Revenue Currently Limited to North American Markets
Currently, FSD subscription income derives exclusively from North American customers. Tesla reported 1.5 million active FSD subscriptions by the conclusion of the second quarter, marking 56% year-over-year expansion.
Based on the $99 monthly subscription fee, this subscriber base generates approximately $2 billion in annualized revenue. The company additionally noted that roughly 55% of vehicles delivered during Q2 included FSD subscription packages.
European market access could substantially augment these figures once regulatory approval materializes.
Tesla’s second quarter performance delivered mixed signals. Revenue reached $28.24 billion, climbing 25.5% year-over-year and exceeding the $26.42 billion analyst projection. Conversely, earnings per share landed at $0.33, significantly trailing the $0.50 consensus forecast. Both operating income and free cash flow metrics underperformed expectations.
Wall Street Perspectives and Institutional Holdings
Analyst sentiment remains divided regarding the stock. Consensus recommendation stands at Hold, with a mean price objective of $401.74. Deutsche Bank established a $420 price target, while Canaccord Genuity assigned a Buy rating with a $410 target, and Goldman Sachs similarly maintains a Buy recommendation.
Representing bearish viewpoints, Wells Fargo carries an Underweight rating accompanied by a $130 price target.
Sanders Morris Harris expanded its Tesla position by 54.6% during the second quarter, increasing holdings to 7,684 shares valued at approximately $3.23 million. Institutional investment firms collectively control 66.2% of outstanding shares.
ARK Invest’s Cathie Wood allegedly purchased an additional $14.3 million worth of Tesla shares in recent trading sessions. Conversely, Michael Burry continues holding short positions against the stock.
Tesla’s 52-week trading range spans from $297.38 to $498.83. Current valuation reflects a price-to-earnings ratio of 297.73.
China-manufactured vehicle deliveries increased 37.8% year-over-year throughout July, extending the growth streak to nine consecutive months.
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