Tesla has been quietly rolling out its Full Self-Driving (FSD) system for tests across Europe. The tech giant, led by Elon Musk, aimed to bring this advanced driving feature to major cities. Things seemed to go well at first. But a recent round of tests in Madrid, Spain, hit a snag with the local city government.Last week, Tesla put its self-driving cars through their paces on the streets of the Spanish capital. There was some supervision during these sessions. The company likely felt good about the results of these demonstrations. However, that satisfaction was short-lived.Madrid authorities quickly stepped in. They alerted Tesla that something was off with their operations. It turns out that the company did not have the right permits for these tests. Now, Tesla needs to explain itself to the city.Borja Carabante, who handles urban planning, environment, and mobility for the Madrid City Council, raised the alarm on Friday. He pointed out that the FSD vehicle lacked the necessary approvals. To operate such a vehicle on public roads, a permit from the General Directorate of Traffic (DGT) is needed. This permit also requires an approved report from the Madrid City Council.
— Tesla Europe, Middle East & Africa (@teslaeurope) July 3, 2025
Carabante explained that a European rule sets the conditions for self-driving vehicles on city streets. Tesla has run similar FSD tests in other cities. But Madrid seems to be where Elon Musk’s company stumbled on the red tape.The Madrid City Council was not alone in its concerns. The General Directorate of Traffic (DGT) also spoke up. This agency directly contacted Tesla. They asked for a full explanation about why these unauthorized tests were done on public roads. It is not clear yet if Tesla will respond to these claims or defend its actions.What started as a positive step for Tesla’s European FSD rollout quickly became a headache. The self-driving technology itself performed well during the demonstration. But the way Tesla went about it was not by the book. Elon Musk finds himself in another public controversy. If he wants to do more tests in Madrid, he will surely need to get all his paperwork in order first.
