AMSTERDAM, April 11 -- Dutch regulators approved the use of Tesla's self-driving software with required human supervision on highways and city streets in a European first for the electric car maker, which hopes to see similar action ‌from the rest of the European Union.

Wide FSD adoption is central to Tesla's growth strategy. Much of the company's US$1 trillion (RM3.96 trillion) valuation hinges on Chief Executive Elon Musk's bet that artificial-intelligence-driven self-driving software and robotaxis will become a major revenue stream.

The Netherlands' approval for the technology, called Full Self-Driving Supervised, which can steer, brake and accelerate a car, follows more than 18 months of tests and analysis by the Dutch vehicle...