AD #4290 - Tesla FSD Faces European Skepticism; 2026 U.S. Sales On Path to Fall 4%; 'China Speed' Gets Even Faster
About this episode
Tesla’s supervised FSD is running into skepticism from Nordic regulators, even as the Netherlands has already approved it and a decision for the wider region remains months away. The episode also weighs the impact of a possible tariff jump on European automakers, a forecast for softer U.S. sales, and BMW’s move to put new process tech into series production. It closes with a striking look at how China’s auto industry is compressing development cycles to an almost monthly pace.
FSD
"We thought Tesla had the potential to get permission to use supervised FSD throughout Europe, but maybe that's not the case. Last month, Tesla got a big boost when the Netherlands Vehicle Authority, known as the RDW, approved supervised FSD for use in the country."
FSD is Tesla’s software that tries to automate more parts of driving than typical cruise control or lane-keeping. Regulators care about whether it’s safe and whether the driver still has to supervise.
FSD (Full Self-Driving) is Tesla’s software package aimed at automating more driving functions than basic driver-assist. In regulatory discussions like this one, the focus is usually on safety behavior, driver responsibility, and what the system is allowed to do in specific regions.
RDW
"Last month, Tesla got a big boost when the Netherlands Vehicle Authority, known as the RDW, approved supervised FSD for use in the country. The RDW is seeking EU approval for the technology..."
RDW is the government agency in the Netherlands that oversees vehicle rules. Here, it approved Tesla’s supervised FSD and is talking with other European regulators about it.
RDW is the Dutch national vehicle authority (Rijksdienst voor het Wegverkeer). In this segment, RDW is the regulator that approved supervised FSD in the Netherlands and is then coordinating with other European regulators.
EU approval
"The RDW is seeking EU approval for the technology and today it will meet with regulators from other European countries about why it approved FSD... Committee members representing fifty five percent of EU member states and sixty five percent of the region's population must vote yes..."
EU approval means the system has to be cleared by regulators across Europe, not just in one country. Even after one country approves it, the EU-level process can take months.
“EU approval” here means getting authorization at the European Union level so the technology can be used across member countries under a common regulatory framework. The segment also describes a committee voting process that can delay approval until later in the year.
tariffs
"President Trump's threat to raise tariffs on European cars to twenty five percent sure lit a fire under the EU... Now there's a big push to get the deal done this month..."
Tariffs are extra taxes on imported products. If tariffs go up, cars can cost more, and automakers may lose money or have to raise prices.
Tariffs are taxes imposed on imported goods, and in this context they’re being discussed as a way to raise the cost of European cars entering the U.S. The segment ties tariff levels to automaker profit impacts and pricing pressure.
Bernstein
"President Trump says the tariffs will go from fifteen to twenty five percent next week, and as we reported yesterday, Bernstein calculates that would cut six billion dollars in profits a year for European automakers."
Bernstein is an investment/analysis firm. They’re being cited here to estimate how much money European car companies could lose if tariffs rise.
Bernstein is referenced as the analyst firm providing an estimate of how tariff changes would affect automaker profits. In market coverage like this, analyst calculations are used to quantify expected financial impact.
Audi
"Audi is especially worried. It's about to launch its Q nine suv and the new tariff could add twenty thousand bucks to its price tag..."
Audi is the car brand singled out as being particularly worried about tariffs. The host says tariffs could make an upcoming Audi SUV more expensive.
Audi is a German automaker, and the segment highlights it as especially exposed to tariff-driven pricing pressure. The mention connects Audi’s upcoming “Q9” SUV launch with the idea that tariffs could add significant cost to the vehicle’s price.
Gile
"Despite delivering a record high number of vehicles in the first quarter that boosted revenue fifteen percent, Gile's profit fell and missed analysts expectations. The automaker's net profit tumbled twenty seven percent..."
The transcript mentions a company (name sounds garbled) and talks about its quarterly results—deliveries, revenue, and profit. The point is that even with strong vehicle deliveries, profit can still drop due to factors like currency changes.
“Gile” appears to be a transcription error for a specific automaker referenced by the hosts, and it’s discussed in terms of quarterly deliveries, revenue, and net profit. Because the company name is unclear in the transcript, this annotation focuses on the financial reporting context rather than identifying the exact brand.
foreign exchange fluctuations
"Despite delivering a record high number of vehicles in the first quarter that boosted revenue fifteen percent, Gile's profit fell and missed analysts expectations. The automaker's net profit tumbled twenty seven percent to six hundred and fourteen million dollars, which GIL blamed on foreign exchange fluctuations..."
Foreign exchange fluctuations are changes in results caused by currency rates moving up or down. If a company earns money in one currency and reports in another, exchange-rate changes can swing profits.
Foreign exchange fluctuations are changes in profit or cost caused by movements in currency exchange rates. For automakers with global sales, currency swings can materially affect reported earnings even if vehicle sales are strong.
Harley Davidson
"With approximately three quarters of its components source from suppliers, Harley Davidson was hit especially hard by tarifs in the first quarter, paying out forty five million dollars."
Harley-Davidson makes motorcycles. The episode explains that tariffs hurt its costs and revenue, and the company is trying a new plan to sell more bikes and related products through dealers.
Harley-Davidson is a motorcycle manufacturer, and this segment discusses how tariffs and supply-chain costs hit its business. The hosts also cover its strategy shift—leaning on motorcycles, parts/accessories, and dealer relationships—to improve financial results.
non destructive
"Before paint thickness was measured manually, requiring sections to be cut off and inspected under a microscope, which took time and pretty much rendered the part unusable. The new process is non destructive."
Non-destructive testing means you can check something without breaking or ruining it. In this case, they measure paint thickness without cutting the part apart.
Non-destructive testing (NDT) means checking a part’s condition without damaging or cutting it open. Here, the process measures paint thickness on plastic parts without rendering the part unusable, unlike older manual inspection methods.
macrometer level
"It measures down to the macrometer level and seconds and can detect any issues faster. BMW says there's potential for the technology to spread to other plants, and in the future it will also use AI to analyze this data to optimize the process even more."
The hosts describe measurement down to the “macrometer” level, meaning extremely fine thickness resolution. In manufacturing, that kind of precision helps ensure coatings are applied correctly and consistently on plastic components.
AI
"BMW says there's potential for the technology to spread to other plants, and in the future it will also use AI to analyze this data to optimize the process even more."
AI here means computer software that can look at lots of measurement data and spot patterns. BMW wants to use it to improve how they run the paint process.
AI (artificial intelligence) refers to software that can analyze data patterns and make recommendations. BMW plans to use AI to interpret the paint-thickness measurements to optimize the manufacturing process.
China Speed
"They call it China Speed. And it's the breath taking pace at which Chinese automakers and suppliers can get projects done."
“China Speed” is a term used for how quickly Chinese automakers and suppliers can complete new vehicle programs. The segment contrasts typical timelines—about 18–24 months in China versus 36–42 months outside China—and argues that faster development is becoming the new norm.
product iterations on a monthly basis
"...China's auto industry is moving to twelve month programs, with suppliers even doing product iterations on a monthly basis."
They’re saying the design gets updated every month. Instead of taking a long time to refine a part, teams improve it in short cycles.
“Monthly” iterations imply a rapid engineering cycle where suppliers update designs frequently rather than waiting for longer development phases. In automotive terms, this can mean faster feedback loops between design, testing, and manufacturing readiness.
product development process
"Traditionally, automakers use highly specified steps and procedures. Suppliers were given thousands of specifications... But China moves much faster, demands top quality, and has relegated the old way of doing business."
They’re talking about how car companies design and build new vehicles. The point is that China is speeding up the process by iterating faster instead of following a slow, step-by-step checklist.
The hosts contrast China’s faster product development approach with the more step-by-step, tightly controlled process used by traditional automakers. They describe how suppliers in China iterate more quickly and move away from waiting for each quality gate before progressing.
define quality target
"...a program was not allowed to move forward until each step of the way achieved a define quality target that worked well as long as everyone in the industry played by those rules."
They describe a system where suppliers have to meet specific quality goals at each stage. If the goal isn’t met, the project can’t move forward yet.
The transcript describes “defined quality targets” as measurable checkpoints suppliers must hit before the program can advance. This is essentially a quality-gating model where progress is blocked until each step meets agreed performance standards.
Auto Fourcast Solutions
"Every week, Auto fourcast Solutions publishes the latest data. On new models from all over the world. This week's newsletter lists twenty one new model updates just from China."
They mention a company that publishes industry data. The hosts use it as their source for how many new vehicle updates are coming from China.
Auto Fourcast Solutions is referenced as a data publisher that tracks new models and industry trends. The hosts cite its weekly newsletter and quarterly updates to support claims about how quickly China is updating vehicle programs.
ALEX Partners
"Auto Line Daily is brought to you by alex Partners. When it really matters, Bridge Stone Solutions for your journey... That partner is ALEX Partners when it really matters,"
ALEX Partners is mentioned as the show sponsor. They’re presented as a business/consulting partner helping companies adapt to big changes in the auto industry.
ALEX Partners is named as a sponsor and described as a consulting partner. The segment frames it as supporting automotive transformation efforts like electrification and digitalization across both factory operations and corporate leadership.
Bridge Stone Solutions
"When it really matters, Bridge Stone Solutions for your journey, CSP, the Composites Solution partner, Intrepid Control Systems over the YEIR Engineering boost your game..."
They mention a sponsor connected to tires. The ad is about better grip, especially in wet conditions.
Bridge Stone Solutions is mentioned as a sponsor in the context of tires and grip. The wording suggests a brand/partner tied to Bridgestone’s tire technology and wet-weather traction messaging.
Intrepid Control Systems
"When it really matters, Bridge Stone Solutions for your journey, CSP... Intrepid Control Systems over the YEIR Engineering boost your game..."
They mention Intrepid Control Systems as a sponsor. “Control systems” generally means the electronics/software that manage how parts of a vehicle operate.
Intrepid Control Systems is named as a sponsor tied to “control systems,” which in automotive usually refers to electronics/software that manage vehicle functions. The segment doesn’t specify a particular system, but the phrase indicates a technology provider role.
CSP, the Composites Solution partner
"When it really matters, Bridge Stone Solutions for your journey, CSP, the Composites Solution partner, Intrepid Control Systems over the YEIR Engineering boost your game..."
They mention CSP as a partner related to composite materials. Composites are materials used in products to help with things like weight and design flexibility.
CSP is referenced as a composites-focused partner, implying expertise in composite materials used in automotive and industrial applications. Composites are often used to reduce weight and improve packaging efficiency, though the segment doesn’t go into technical details.
electrification, digitalization, supply chain reinvention, regulatory shifts
"The automotive and industrial sectors are undergoing a historic transformation electrification, digitalization, supply chain reinvention, regulatory shifts."
The sponsor lists big changes happening across the auto industry. It’s basically about electric powertrains, more software/tech, changing how parts are sourced, and new rules.
These are broad industry transformation themes. Electrification and digitalization refer to powertrain electrification and software/data-driven vehicle development, while supply chain reinvention and regulatory shifts reflect changes in how cars are built and governed.
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