Luca Arrigo - LinkedIn

While Europe is cautiously navigating the road to autonomous transport, some countries are shifting gear – and Malta, says entrepreneur Luca Arrigo, should be one of them.

In a recent LinkedIn post, Mr Arrigo highlighted a development that could be quietly reshaping the future of transport in Europe: “Did you know that the only legal place in the EU for a Tesla car to use its full capabilities is in the Netherlands and Norway?” he wrote. “Why? Because in March and April 2025 they implemented an Article 39 exemption under UNECE’s 1958 agreement. Granting Tesla a two-year exemption to test FSD (supervised).”

As Tesla prepares to roll out its robotaxi service in Austin and across Texas this June, Mr Arrigo warns that Europe risks lagging behind – unless more countries move quickly to follow the lead of the Netherlands and Norway. Spain and the Czech Republic, he adds, are reportedly already on track to do so.

In his essay, Malta’s Chance to Lead: Why We Should Embrace Tesla’s Full Self-Driving Revolution, Mr Arrigo outlines a bold case for why the island is uniquely positioned to host a pilot of Tesla’s Full Self-Driving (FSD) system. He argues that “Malta, with its compact size, tech-forward vision, and agile governance, has a unique opportunity to join these pioneers and become one of the first European nations to bring FSD to our streets.”

He envisions a near future in which a significant portion of Malta’s transport and courier workforce is replaced by AI-powered fleets, with job displacement balanced by the emergence of high-skilled roles in engineering, data science and customer service. “Thousands of people employed as drivers and couriers will reduce to 200 AI experts and customer service personnel,” he writes.

Tesla’s FSD system has already been logging over 1.2 million miles per intervention in supervised mode in the US, and according to him, has demonstrated “a crash reduction of up to 40 per cent compared to human-driven vehicles.” However, current EU regulations restrict autonomous systems to speeds under 60 km/h and only on structured roads. “Rules ill-suited for Malta’s narrow, winding streets,” he notes.

That’s where the Article 39 exemption comes in. As early adopters, both the Netherlands and Norway used this mechanism to grant Tesla permission to collect real-world data outside the scope of current rules. “These exemptions allow Tesla to train FSD’s neural networks in real-world conditions,” Mr Arrigo explains, “paving the way for broader European approval by late 2025, pending the European Commission’s vote.”

Why Malta? Mr Arrigo believes the country’s compact geography, varied road conditions, and digital infrastructure make it ideal for testing. “From Valletta’s one to two-meter-wide historic alleys to Sliema’s bustling streets, Malta’s diverse road network mirrors global urban challenges in miniature,” he argues. Add to that the nation’s near-universal 5G coverage and early adopter status in tech policy – from blockchain to mobile networks – and the case strengthens.

His proposal isn’t abstract. He suggests that Malta launch a supervised pilot programme by Q3 2025 involving five to 10 vehicles, jointly overseen by Transport Malta and Malta Enterprise. “The Malta Transport Authority, in collaboration with Malta Enterprise, could oversee a €2–5 million pilot involving give to 10 vehicles, funded partly by Tesla and EU innovation grants,” he proposes.

He is also conscious of public concerns. “Scepticism about autonomous vehicles is understandable, especially in Malta’s pedestrian-heavy cities,” he acknowledges. But he insists that “testing would begin in controlled zones, with trained safety drivers overseeing every manoeuvre.” Public demonstrations and transparent reporting would be key to building trust.

 “Delaying action could cede investment and jobs to competitors, leaving Malta stuck in traffic while others race ahead,” he warns. With the global autonomous vehicle market projected to hit $1.6 trillion by 2030, he argues that “Malta must claim its share now.”

He calls on Prime Minister Robert Abela and Minister for Transport Chris Bonett to act decisively: “By granting Tesla an Article 39 exemption, as the Netherlands and Norway have done, Malta can authorise a supervised FSD pilot by Q3 2025.”

“Our streets, our economy, and our legacy depend on it,” he concludes.

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