Tesla to Launch Full Self-Driving in UAE by 2026, Expanding Middle East Footprint

December 22, 2025
Tesla to Launch Full Self-Driving in UAE by 2026, Expanding Middle East Footprint
  • Tesla’s broader autonomous push includes Robotaxi expansion with emphasis on scaling operations and profitability as the fleet grows.

  • Tesla plans to launch Full Self-Driving (FSD) in the United Arab Emirates by January 2026, marking a significant expansion into the Middle East and making the UAE the eighth country to gain FSD access.

  • Elon Musk has indicated FSD Supervised could debut in the UAE as soon as January 2026, enabling hands-off highway driving, urban navigation, and parking under driver oversight in cities like Dubai and Abu Dhabi.

  • The UAE rollout would extend Tesla’s supervised autonomous driving beyond North America and Europe, integrating into Dubai’s and Abu Dhabi’s advanced smart mobility ecosystem.

  • The coverage contrasts Tesla’s vision-based system with Waymo’s sensor-and-remote-support model, highlighting different approaches to autonomy during outages.

  • Implementation challenges in the UAE include adapting to desert conditions, addressed through sensor fusion improvements and over-the-air updates that reduce recalls and cost.

  • Separately, the Delaware Supreme Court reinstated Elon Musk’s 2018 Tesla compensation package, preserving about 304 million options now valued at roughly $139 billion.

  • Tesla stock surged to an all-time intraday high after the pay package ruling, trading near $488 at one point.

  • U.S.-oriented offers remain attractive for UAE orders, with 0% financing for five years plus one year of insurance for Model 3 and Model Y if delivered by March 31.

  • Analysts note potential revenue growth from FSD subscriptions (about $99/month in 2025) and opportunities for fleets to boost efficiency through Tesla partnerships.

  • FSD Supervised has earned positive recognition abroad, including praise from Auto Bild for its performance in Berlin’s urban environment.

  • In the competitive landscape, Tesla faces regional players like Baidu’s Apollo in the Middle East, with NVIDIA continuing as a key supplier of Tesla’s AI chips.

Summary based on 6 sources


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