Tesla faces growing competition in Europe's autonomous vehicle market as Stellantis partners with ride-hailing firm Bolt for driverless trials starting in 2026. Meanwhile, Tesla extends its Full Self-Driving demo program amid declining sales. Ford and Renault also team up to launch affordable EVs, intensifying pressure on Tesla.
Tesla Inc. (NASDAQ: TSLA) is aiming to regain its position as the world's leading electric vehicle (EV) company through advancements in self-driving technology and affordable models. However, recent developments in Europe pose significant challenges to these goals.
Stellantis N.V. (NYSE: STLA) has signed a deal with Estonia-based Bolt to deploy driverless vehicles across Europe, with on-road trials planned for 2026. The partnership integrates Stellantis' autonomous vehicle platforms with Bolt's ride-hailing network, which serves over 200 million customers in more than 50 countries, including 23 European Union member states. Despite varying regulations in each EU nation, the companies are confident in overcoming these hurdles.
Tesla's Full Self-Driving (Supervised) program is expanding in response. The company has extended its demo ride-along program until the end of March 2026 and recently introduced FSD (Supervised) V14 ride-alongs in Denmark for the first time. These experiences allow passengers to observe the system handling real-world traffic, with a Tesla employee in the driver's seat. Tesla now offers these in Italy, Germany, France, and Denmark, with more countries to follow. The promotional text states: “Ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all.”
Tesla's European sales have declined by double-digit percentages in most months of 2025, exceeding 40% in some nations. Analysts suggest Elon Musk's involvement in EU politics may have contributed to a buyer backlash. Meanwhile, legacy automakers are advancing: nearly every major European car company has launched its own EVs, and Renault is partnering with Ford Motor Co. (NYSE: F) to develop a small, affordable Ford-branded EV for the market. Ford CEO Jim Farley remarked, “We know we’re in a fight for our lives in our industry, and no better example than here in Europe.”
Tesla positions itself as the leader in self-driving due to its artificial intelligence capabilities and has hinted at a $25,000 EV, but delays are mounting in both areas.