Yeah, they will still sell it but it wont sell to people living in CA which is one of the larger US markets. that's a non-trivial market to close your doors to for something like FSD. The margins on FSD have to be some of the best on the whole car.

The EU regulations and standards are likely just as annoying for them, but they don't sell the same volume across the EU yet, and the regulations are a bit more consistent across the whole region. So getting a Tesla in one EU country will work the same in another. Which is just easier for a consumer.

I am not saying this would end Tesla, but I can't imagine a world where they want it to come to that. I think they would look at either properly complying or some other workaround before just drawing a fence around FSD in CA.