Tesla to Launch Full Self-Driving in UAE by 2026, Expanding Middle East Footprint
December 22, 2025
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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