Transportation Ministry Approves Tesla to Start Autonomous Driving Testing in Israel

The Transportation Ministry has approved Tesla to begin autonomous-driving tests in Israel, marking the first step toward authorizing the use of Tesla’s Full Self-Driving (FSD) system, which allows cars to operate autonomously with a supervised driver.

This approval follows secret talks held in May 2025 between Transportation Minister Miri Regev and Tesla representatives in Germany. During these discussions, it was agreed that Tesla VP EMEA Joe Ward would visit Israel to explore the possibility of establishing a smart transportation hub for Israel and the wider Middle East.

Tesla did not comment on the recent announcement, nor did they add a timeline for when users will be able to start testing the FSD system. While similar tests were conducted in the U.S., Canada, Mexico, and even Puerto Rico, the company plans to expand its FSD trials in Asia, with approvals already underway in South Korea. Furthermore, Tesla also announced that it would halt production of two of their most popular models, the Model X and Model S, to focus on the important feature. This comes as Tesla posted an 11% annual drop in total revenue, dropping from $19 billion in 2024 to $17 billion in 2025. However, the company reported an increase in revenue from energy generation, storage, and other services, with a $1.1 billion gross profit in the energy sector. 

Transportation Minister Miri Regev said “The State of Israel leads in innovation with giant steps. Integrating smart autonomous systems on roads, under supervision and control, is another step toward strengthening road safety,” while Transportation Ministry Director General Moshe Ben Zaken added, “Israel currently serves as a preferred testing and development arena for advanced vehicle technologies for leading global vehicle manufacturers.” 

Thousands of Tesla vehicles already operate on Israeli roads, with owners paying 36,000 NIS (equivalent to 11,619 dollars) in hopes that they will receive approval to operate them with remote software. The decision to approve FSD testing in Israel came following pressure from Tesla owners in Israel and discussions about bringing advanced technology into the market. 

Since early 2021, Tesla has held a direct import license to bring models S, X, and 3 into Israel, and as of July 2024, personal imports of the Tesla Cybertruck faced licensing issues due to its bullet-resistant design.