Tesla, Inc. (TSLA.US) Bows to European Approval: Abandons "Full Self-Driving," FSD Renamed "Assisted Driving"

Tesla, Inc. (TSLA.US) is abandoning its "Full Self-Driving (FSD)" brand name as it pushes for approval of this driver-assistance system in Europe. The name has long been criticized as dangerously misleading, and Tesla, Inc. is seeking to distance itself from it. Recently, the automaker changed the designation on its European website to Tesla Assisted Driving. The U.S. website, however, still retains the technology's name: Full Self-Driving (Supervised). For a long time, Tesla, Inc.'s naming of this driver-assistance system has been a focal point of controversy among regulators, safety advocates, and even some Tesla, Inc. owners. All parties argue that the name easily leads people to mistakenly believe the vehicle can achieve full self-driving, when in reality the driver must remain alert at all times and be ready to take over the vehicle. Chief Executive Officer Elon Musk has also drawn criticism for making exaggerated, unfounded claims about the capabilities of Tesla, Inc. vehicles. Last year, the California Department of Motor Vehicles threatened to suspend Tesla, Inc.'s sales operations in the state on grounds that the marketing of its driver-assistance technology was allegedly misleading. Only after Tesla, Inc. took corrective measures did regulators withdraw the penalty. The corrective measures included phasing out the Autopilot brand name and clearly stating that the Full Self-Driving (FSD) feature requires the driver's full attention at all times. FSD is an important source of revenue for Tesla, Inc.'s automotive business, typically charging users a subscription fee of $99 per month. At the same time, it is also a core lever for Musk in repositioning the company, as he hopes to build this automaker into a cutting-edge technology company leading the development of autonomous driving and Siasun Robot&Automation technology. Tesla, Inc. is currently seeking to introduce the FSD system into Europe, while Europe has been slow to embrace the technology. When Dutch regulators approved FSD's rollout in April this year, they emphasized that the European version has more restrictions than the U.S. version, and stated in a declaration that "vehicles equipped with Supervised FSD are not autonomous vehicles." Tesla, Inc. is still continuing to apply for approval of the system in other European countries.