UK officials have blocked Tesla's full self-driving software rollout, severely limiting its functionality in the UK and across Europe in the latest swipe for Elon Musk.
It comes after the Department for Transport warned that autonomous driving technology by the car brand would not be allowed in its entirety on UK roads.
The transport body said it would restrict the advanced driver assistance systems enabled in Tesla models with the self-driving software set to face significant hurdles in the European market.
The restrictions require drivers to keep their hands on the wheel and limit the system to basic highway manoeuvres rather than complex urban driving scenarios.
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Elon Musk hoped the self-driving car would be the future for the company
REUTERS/PABut documents seen by The Telegraph revealed how DfT officials have actively worked to frustrate plans for legalising advanced driver assistance systems across Europe.
The restrictions were raised during meetings of the United Nations Economic Commission for Europe, the body responsible for vehicle safety regulations.
As originally drafted, the plans would have permitted vehicles to perform complex manoeuvres including lane changes, junction turns and traffic light navigation without drivers' hands on the wheel.
UK officials proposed significant limitations in September, stating: "Introducing system-initiated manoeuvres is a significant step which entails a degree of unknown."
They expressed concerns that while driver assistance systems might reduce collisions, they "may also introduce new safety risks".
The changes mean that only basic versions of systems like Tesla's FSD are likely to be deployed in the UK and Europe over the next year.
In January, officials from the UK, Norway, Sweden and the Netherlands requested further evidence on driver assistance systems' safety.
Their joint statement noted: "The technological advancements in these systems are promising, but there remain concerns about their impact on driver behaviour, situational awareness and overall safety."
The officials insisted the technology should be introduced "in phases" rather than allowing immediate full implementation.
But Musk has been banking on autonomous driving as Tesla's next growth engine and would be urgently needed to help claw back declining sales and the political backlash over his support for Donald Trump.
The Tesla chief, who has clashed with Prime Minister Keir Starmer in recent months, has stated that autonomy will be the "main driver" of value for the company.
Musk expressed frustration with European regulations in January, telling investors that "Europe is a layer cake of regulations of bureaucracy, which really needs to be addressed."
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The Tesla Full Self-Driving technology has been highly anticipated across the UK
REUTERSTesla's former head of safety policy, Marc Van Impe, who oversaw discussions on the regulatory changes, left the company for SpaceX in October.
Upon departing, he criticised the slow regulatory process, stating that it "impacts Europe's competitiveness". Tesla currently charges customers £6,800 for "full self-driving capability" despite the feature having no practical use in the UK.
