In recent developments out of New York, the Trump administration has instigated motor industry rule modifications that could reduce the number of crash reports involving self-driving cars, with Tesla being a prominent beneficiary. Announced by the Transportation Department on Thursday, the new regulations withdraw the necessity for car manufacturers to report certain non-fatal accidents exclusively concerning vehicles equipped with partial self-driving or Level 2 systems, predominantly seen in Tesla models. Elon Musk, CEO of Tesla, previously complained that former reporting requirements portrayed his company negatively.
The reduction in mandatory reporting for Tesla and other manufacturers might obscure potential equipment defects from regulatory bodies, making it arduous for the public to obtain comprehensive safety details, suggest automotive industry analysts. Conversely, the updated rules could aid Tesla in enhancing its safety record, potentially boosting sales. According to Sam Abuelsamid of Telemetry Insight, there will be a substantial decrease in Tesla crash reports. Dan Ives from Wedbush Securities pointed out that competitors like Waymo, which use fully automated systems, will not benefit similarly.
Tesla’s stock witnessed a surge of around 10% following the regulatory changes, fueling speculation that Elon Musk’s advisory role to President Donald Trump could position Tesla advantageously concerning regulatory modifications related to autonomous vehicles. Other automakers like Hyundai, Nissan, Subaru, and BMW also produce vehicles with Level 2 systems, yet Tesla alone accounts for the majority share of these vehicles on the roads. Automobiles operated by firms such as Waymo, which fully automate driving, remain unaffected by the rule change.
The National Highway Traffic Safety Administration (NHTSA), responsible for enforcing automobile safety standards, affirmed that the revisions offer no special treatment towards any specific self-driving technology and underlined that the overall amendments benefit all manufacturers of self-driving vehicles. In their official statement, the NHTSA mentioned that changes are necessitated to reinforce safety due to the absence of a driver in Autonomous Driving Systems (ADS).
Waymo opted not to comment, and Tesla did not provide any response to inquiries. Under the revised guidelines, accidents involving Level 2 systems that necessitate towing but don’t involve fatalities, injuries, or airbag deployment won’t require reporting. Nonetheless, towing instances involving ADS must be reported. Previously, a significant proportion of reported Level 2 crashes involved Tesla vehicles; over 800 out of 1,040 incidents in a year, as evaluated by available data. However, the absence of towing information ambiguity persists in various cases within the database.
According to the NHTSA, only 8% of previously reported crashes resulted in vehicles requiring towing without triggering other reporting prerequisites. Additional cases remain unspecified regarding towing requirements. The Transportation Department’s relaxation in crash reporting is part of a broader initiative aimed at reducing bureaucratic hurdles, positioning the U.S. competitively in the global self-driving vehicle sector, particularly against China. Furthermore, efforts are underway to harmonize various state regulations into a cohesive national framework for self-driving vehicles.
Transportation Secretary Sean Duffy stated that the country is in fierce competition with China to drive innovation, emphasizing the high stakes involved. The new policies aim to cut down on bureaucratic processes inching towards a unified national standard. Despite concerns that the Trump administration might entirely abolish NHTSA’s crash reporting mandates, this announcement shows a more moderated approach.
The regulatory update coincides with Elon Musk’s recent declaration during a Tesla investor call that the company plans to introduce self-driving Tesla taxis in Austin, Texas, starting in June. Waymo, affiliated with Google’s parent company Alphabet, already has such cybercabs operational in Austin, alongside various other locales. Musk contends that previous regulations were unjust as Tesla’s vehicles, being extensively used, naturally record more miles compared to other automakers, reinforcing the safety of his cars as life-preserving.
Presently, Tesla is facing dips in sales, attributed partly to backlash against Musk’s alignment with certain political figures and his role in Trump’s governmental expenditure reduction initiatives. With its future pinned on full vehicular automation, Tesla encounters increasing competition, notably from China’s automaker, BYD.