Momenta, the Chinese autonomous-driving company, has signed a deal to develop the driver assistance in future Peugeot and Jeep models. The agreement, signed on 24 September 2026 with Dongfeng Stellantis Automotive Technology, covers battery-electric and plug-in hybrid models arriving from 2027 — and unlike every previous Momenta contract with a Western carmaker, it is not limited to China.
That last point is the story. Momenta already supplies Mercedes-Benz, Audi and BMW, but those deals stop at the Chinese border: the software goes into cars built in China for Chinese buyers. This one reaches Europe.
What Momenta is actually supplying
The systems are built on Momenta's R7 "world model" — an end-to-end approach that learns driving behaviour from data rather than running hand-written rules, which is architecturally the same bet Tesla made with FSD. The roadmap runs past lane-keeping and adaptive cruise to Level 3, the level at which the car takes over the driving task in defined conditions and the driver is permitted to stop watching the road.
Stellantis is keeping brand character in the deal: engineers will tune steering, braking and powertrain response separately, with Jeep biased for off-road behaviour and Peugeot for on-road dynamics.
Momenta's scale
| Metric | Figure |
|---|---|
| Installations, first half of 2026 | 321,000 (+83.7% year on year) |
| Cumulative installations | over 1 million |
| Series models using Momenta | 105 |
| Automaker partners | 26 |
| Stellantis models from | 2027 |
The direction of travel has reversed
For two decades the arrangement was that Western suppliers sold technology into China. Momenta selling assisted driving into the global ranges of Peugeot and Jeep is that arrangement running the other way, and it is the second such signal this month. Only days ago we reported that Mazda's China-built electric SUV gets LiDAR and urban autonomy while the European version gets neither — the capability existing in China and not being exported. Momenta's Stellantis deal is the opposite case, and the more consequential one.
It also lands against an awkward comparison. XPeng has spent this year trying to license out the self-driving stack Tesla has been unable to sell since 2021, with no takers. Momenta has 26.
What this means for a Tesla buyer in Europe
It changes who FSD will be compared against, and when.
Tesla's own timetable in Europe is the constraint here. The approval that would let FSD Supervised operate in the EU is not on the technical committee's October agenda, and the committee does not meet again until December. Stellantis models with Momenta software start arriving in 2027.
A caveat worth holding onto: Level 3 is a roadmap item in this partnership, not a shipped product, and a European Level 3 system needs its own type approval under UN Regulation 157 — the same regulatory wall Tesla is currently waiting at. Stellantis has not said which markets get which capability, and "available in Europe" and "approved for hands-off driving in Europe" are not the same claim. Mercedes-Benz took years to get a limited Level 3 system certified in Germany.
What is firm is the commercial fact. A Chinese supplier now has a route into European showrooms through two mainstream Stellantis brands, at a price point well below a Tesla. For the first time, the assisted-driving comparison a European buyer makes in 2027 may not be between Tesla and a legacy supplier, but between Tesla and a Chinese software company that has already shipped a million installations.