- Tesla announced plans to produce large numbers of driverless robotaxis, which lack driver control, from 2026.
Members of President-elect Donald Trump's transition team have told advisers they plan to make a federal framework for fully automated vehicles one of the Transportation Department's priorities, according to people familiar with the matter.
If the new rules enable cars without human control, it would directly benefit Tesla Inc. Chief Executive Officer and Trump mega-donor Elon Musk, who has become a powerful fixture in the president-elect's inner circle. He has bet the EV maker's future on self-driving technology and artificial intelligence.
Tesla shares traded up more than 8% as of 4:15 a.m. Monday in New York, before the start of regular trading. The stock has risen 28% since Election Day.
Current federal regulations create significant hurdles for companies that want to deploy vehicles without steering wheels or foot pedals in large quantities, which Tesla plans to do. The Trump team is looking for policy leaders for the department to develop a framework for regulating self-driving vehicles, according to people familiar with the matter, who asked not to be named because they were asked to speak publicly. Were not authorized.
While the Transportation Department could issue rules through the National Highway Traffic Safety Administration that would make it easier to deploy autonomous vehicles, an Act of Congress would clear the way for mass adoption of self-driving cars. A bipartisan legislative measure being discussed in the early stages would create federal rules around AVs, the two people said.
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He said one candidate under consideration for transportation secretary is former Uber Technologies Inc. executive Emil Michael, who has spoken with Trump's team and potential staffers. He said the work is in the early stages and policy details have not yet been determined.
Republican Representatives Sam Graves of Missouri and Garrett Graves of Louisiana also have been considered to lead the department, the people said.
The transition team did not respond to requests for comment.
Musk announced in October plans to produce large numbers of driverless Tesla robotaxis, which lack driver controls, by 2026. Current US regulations pose significant obstacles to Musk's plans for Tesla Cybercab models, including limits limiting their deployment.
The CEO called for a federal approval process for autonomous vehicles during Tesla's third-quarter earnings call, saying he would use any role with the government to move it forward.
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Trump has since nominated Musk and entrepreneur Vivek Ramaswamy to lead a new Department of Government Efficiency to “eliminate government bureaucracy” and reduce spending and regulations deemed overly burdensome.
Previous attempts to introduce federal legislation to regulate autonomous vehicles have failed.
NHTSA currently allows manufacturers to deploy 2,500 self-driving vehicles per year under the waiver, but legislative efforts to increase that number to 100,000 have repeatedly failed.
A bill to do so passed the House several years ago during Trump's first term, but the measure has stalled in the Senate. Efforts to merge the bill with other laws during the first year of the Biden administration failed when some makers tried to include language that would prevent consumers from suing or creating class-action cases.
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First publication date: 19 November 2024, 09:27 AM IST