ByTOBIAS HOLCMAN

Tesla will begin supervised autonomous driving trials in Israel after receiving government approval, the Transportation Ministry announced on Sunday.

This represents the first step towards authorizing the use of Tesla's Full-Self Driving (FSD) system, which allows the cars to operate autonomously with a supervised driver at the wheel.

"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," said Transportation Minister Miri Regev.

"Israel currently serves as a preferred testing and development arena for advanced vehicle technologies for leading global vehicle manufacturers," added Moshe Ben Zaken, the Transportation Ministry's director general.

Tesla did not comment on the announcement, while it's still unknown when users will be able to start testing the FSD system.

A row of Tesla Model S sedans are seen outside the company's headquarters in Palo Alto, California April 30, 2015.
A row of Tesla Model S sedans are seen outside the company's headquarters in Palo Alto, California April 30, 2015. (credit: REUTERS/ELIJAH NOUVELAGE/FILE PHOTO)

A similar trial was conducted in the United States, Canada, Mexico, and Puerto Rico, allowing Tesla owners to apply to participate in the FSD test program.

According to Tesla's 2025 Q4 brief, the company plans to expand its FSD trials in Asia, with approvals already underway in South Korea.

Tesla halts production of Model X, Y to focus on 'autonomous future'

During the brief, Tesla also announced that it would halt production of the Model X and Model S, two of their most popular models, to focus on the “autonomous future.”

“As we shift to an autonomous future, Model S & X production will wind down next quarter. If you’d like to own one of them, now’s a good time to place your order,” the company said in a statement.

“Tesla wouldn’t be what it is today without Model S & X and their (early) owners – thank you for your support over the last decade,” it added.

This comes as Tesla posted an 11% year-over-year drop in total revenue, from $19 billion in Q4 2024 to $17 billion in Q4 2025, while it reported increases in revenue from energy generation and storage and other services, with a $1.1 billion gross profit in the energy sector.