Karlstad, Sweden says no to Tesla’s FSD test

City officials in Karlstad have decided to decline Tesla’s request to run self-driving car tests on municipal streets. The reason is ongoing and heavy road construction that will last several years. The city says testing might be considered later, but not until current projects finish.​

Background on Tesla’s request

Tesla reached out to Karlstad’s leadership this fall. The company wanted to run self-driving car demonstrations in a typical urban environment. In a letter, Sofia Bennerstål, Tesla’s head of public policy for Northern Europe, said: “We see your municipality as a very interesting and suitable place for this. Approval from your side would enable us to together explore how self-driving vehicles can continue to be integrated into an urban environment in a safe and sustainable way”.​

The plan was to work closely with the local government. Officials looked positively at the idea at first, with municipal councilor Linda Larsson commenting that it “sounds interesting.” Still, the plan needed a formal go-ahead.​

Decision and reasons

Ann Otto-Nemes, the city’s development director, explained the main reason for rejecting Tesla now: “The reason is that many infrastructure projects are ongoing in the city and then it is not appropriate.” She pointed to plans including a major rebuild of Hamngatan, a key city street, that is expected to stretch through 2028. The city fears that adding another major project could limit traffic flow and make the city center harder to reach for everyone.​

Karlstad is undergoing phased construction. The present work on Hamngatan started in April 2025 and includes new roundabouts, road diversions, and heavy utility work. Every stage tries to keep traffic moving, but the disruptions are clear.​

Possible future testing

Even though the city said no for now, officials haven’t closed the door for future tests. When asked if Tesla might be allowed to test self-driving cars after construction work is finished, Otto-Nemes replied, “Yes, absolutely.”

The city wants to keep its image as a place for testing new ideas. Otto-Nemes stated that Karlstad “has a political direction that the city is an arena for innovation and development because we see that it strengthens attractiveness in the long term.” She explained that the city runs “test environments for new products and services” and expects to keep working with private companies when the timing is better.​

Tesla can still test its self-driving cars on Swedish state highways and expressways, where national regulators gave approval earlier in the fall. But for city streets, local governments can say yes or no. Right now, Karlstad won’t be the test ground Tesla hoped for. Officials say roadwork has to come first.​

Other Swedish cities are following the news. Some, like Stockholm, have also declined recent requests, citing a mix of resources and safety. Tesla and advocates say tests in cities are needed to gather real-world data and improve systems. But for now, Karlstad drivers won’t see self-driving Teslas mixing with downtown traffic.

For updates, city officials have said they remain “open to new projects when conditions allow.” For the self-driving future in Karlstad, that will be after the bulldozers leave.