Rules on self-driving cars loosened in bid to challenge China
The Trump administration will allow self-driving cars an exemption from some safety rules for testing amid a push to compete with China, Transportation Secretary Sean Duffy said Thursday.
U.S. developers of automated vehicles will now have access to an exemption program for 'non-commercial purposes that involve research or demonstration,' according to a letter from the National Highway Traffic Safety Administration (NHTSA).
The Transportation Department also said it would 'streamline' crash reporting for vehicles equipped with autonomous systems.
'America is in the middle of an innovation race with China, and the stakes couldn't be higher,' Duffy said in a video posted to X. 'That's why we're unveiling a new automated vehicle framework as part of our DOT's Innovation Agenda.'
'The long-term goal is to move us closer to a single national standard,' he added. 'We don't want 50 states with 50 standards.'
The Autonomous Vehicle Industry Association (AVIA) touted the announcement as a 'bold and necessary step.'
'We look forward to working with Secretary Duffy and his team to implement smart, forward-looking policies that will make our roads safer, expand mobility, strengthen supply chains, and drive American economic growth for generations to come,' AVIA CEO Jeff Farrah said in a statement.
The move will likely be a boon for Elon Musk's Tesla, which has increasingly focused on self-driving vehicles.
The company has long been expanding the self-driving capabilities available in its electric vehicles. However, it has more recently turned its attention toward fully autonomous robotaxis.
Musk said on the firm's quarterly earnings call Tuesday that they plan to begin offering paid robotaxi rides in Austin in June and in 'many other cities' across the U.S. by the end of the year.
The earnings call marked a crucial moment for the company, as Musk sought to reassure investors that he would dedicate more time to Tesla after the firm reported a 71 percent drop in earnings.
The Tesla CEO said Tuesday that he would dial back his work in the Trump administration starting next month. Musk's work leading the Department of Government Efficiency (DOGE) has faced heavy scrutiny, weighing significantly on his EV firm over the past few months.
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