The Trump administration's decision to accelerate the deployment of self-driving vehicles by relaxing safety requirements and reporting rules led to a nearly 10% increase in Tesla TSLA.O shares on Friday.
Elon Musk, Tesla's CEO and a key advisor to President Donald Trump, has been vocal about launching commercial robotaxi operations. The National Highway Traffic Safety Administration is currently scrutinizing Tesla's Full-Self Driving software following a fatal crash.
U.S. Transportation Secretary Sean Duffy stated that the revised regulations will enhance the competitiveness of U.S. automakers against their Chinese counterparts.
The updated rules will permit certain autonomous vehicles that do not meet federal safety standards, such as lacking rearview mirrors, to operate on U.S. roads. Automakers will also have the flexibility to report less severe crashes on a monthly basis.
Consumer Reports highlighted that vehicles equipped with advanced driver assistance systems like Tesla Autopilot will only need to report crashes involving fatalities, injuries requiring hospitalization, pedestrian incidents, or air bag deployment.
As part of the changes, NHTSA will expand its program to exempt some self-driving vehicles from safety requirements and simplify incident reporting for advanced driver assistance and self-driving systems.
The Alliance for Automotive Innovation praised the USDOT for its proactive approach, emphasizing the urgency to maintain leadership in autonomous vehicles.
While some groups expressed disappointment over diluted reporting requirements and safety exemptions, others raised concerns about the potential risks of deploying autonomous vehicles without proper safeguards.
Automakers have long sought to deploy non-compliant automated vehicles on U.S. roads, challenging existing safety standards designed for human drivers.
NHTSA's Automated Vehicle Exemption Program will now include domestically produced vehicles, expanding opportunities for companies to operate automated vehicles in the U.S.
In recent developments, General Motors withdrew its petition to deploy self-driving vehicles without human controls after facing regulatory hurdles and safety concerns. Alphabet's Waymo also announced plans to expand its autonomous ride-hailing service with a significant funding round.
Overall, the updates in self-driving regulations are poised to reshape the landscape of autonomous vehicles in the U.S., with implications for both automakers and consumers.
Reporting by David Shepardson; Editing by Hugh Lawson, Tom Hogue and Bill Berkrot