Trump Plans Push For Federal Self-Driving Rules

Tesla’s share price jumped sharply on Monday after Bloomberg reported that US president-elect Donald Trump’s transition team is planning to make federal regulations for self-driving vehicles a priority at the Department of Transport.

The Trump transition team is looking for policy leaders for the department to develop a framework to regulate self-driving vehicles, the report said.

The report said a bipartisan legislative measure is also being discussed at the early stages to create federal rules around AVs, a necessary move to clear the way for mass adoption of the technology.

It said former Uber Technologies executive Emil Michael and Representatives Sam Graves and Garret Graves have been considered to lead the department.

Robotaxi plans

Tesla has made self-driving a key part of the company’s plans, and in October unveiled a two-seat “Cybercab” self-driving taxi prototype without steering wheel or other driver controls that it plans to begin manufacturing in 2026.

Since 2020 the company has also been beta-testing a paid feature in its consumer vehicles called Full Self-Driving (FSD), which, despite its name, is not fully automated and requires constant driver supervision.

In introducing the Cybercab last month, Tesla chief executive Elon Musk said he would use any influence with the government to push for federal self-driving rules, calling the current state-by-state approval process “painful”.

Musk and entrepreneur Vivek Ramaswamy were recently named to lead a government efficiency initiative to reduce bureaucracy, cut spending and reduce regulatory oversight.

Legal changes

The Transportation Department, through the National Highway Traffic Safety Administration (NHTSA), currently permits manufacturers to deploy only 2,500 self-driving vehicles per year and new legislation would be required to raise the figure.

An effort in the first year of the Biden administration to merge a Trump-era bill with other legislation became bogged down when some manufacturers tried to include measures to prevent consumers from suing or forming class-action cases.

The NHTSA is currently conducting an investigation into accidents involving Tesla’s Full Self-Driving, including a 2023 fatal incident.