Tesla stock is beating the broader market today: here's why Tesla shares rose 0.4% to $350.81 in early trading, outperforming a weaker broader market. The S&P 500 and the Dow Jones Industrial Average fell 0.1% and 0.3%, respectively, as geopolitical tensions escalated. The move followed comments from Donald Trump, who said the US Navy would blockade the Strait of Hormuz after peace talks with Iran failed. The development pushed benchmark crude prices up 6% to above $100 per barrel. Europe approves Tesla’s FSD system Tesla’s gains were driven by regulatory progress in Europe. Authorities in the Netherlands approved the company’s Full Self-Driving (FSD) driver-assistance system, marking the first such approval in the region. Cantor Fitzgerald analyst Andres Sheppard said the decision is significant. “We view this as material, since it marks the first country in Europe to grant regulatory approval of Tesla’s FSD, or to allow autonomous vehicles on European roads,” he wrote, adding that Tesla expects approvals in additional European countries “soon.” Sheppard maintains a Buy rating on the stock with a $510 price target. The approval includes important limitations. The Netherlands’ RDW vehicle authority said the system requires active driver supervision at all times. “FSD Supervised is not self-driving,” the regulator said, noting that drivers must remain attentive and ready to take control. It added that the European version of the system differs from the US version, with tighter constraints in place. Self-driving central to Tesla valuation Autonomous driving technology remains a key pillar of Tesla’s valuation. In many Wall Street models, self-driving capabilities account for a significant portion of the company’s roughly $1.5 trillion market value. Tesla trades at a punishing premium, with a trailing price-to-earnings ratio ranging between roughly 295x and 325x depending on which earnings figure is used. On a forward basis, consensus analyst estimates