US to loosen rules on Tesla, other carmakers taking on China in race for self-driving cars

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The Trump administration is loosening rules to help U.S. automakers like Elon Musk’s Tesla develop self-driving cars so they can take on Chinese rivals.

U.S. companies developing self-driving cars will be allowed exemptions from certain federal safety rules for testing purposes, the Transportation Department said Thursday. The department also said it will streamline crash reporting requirements involving self-driving software that Musk has criticized as onerous and will move toward a single set of national rules for the technology to replace a patchwork of state regulations.

“We’re in a race with China to out-innovate, and the stakes couldn’t be higher,” said Transportation Secretary Sean Duffy in a statement. “Our new framework will slash red tape and move us closer to a single national standard.”

The new exemption procedures will allow U.S. automakers to apply to skip certain safety rules for self-driving vehicles if they are used only for research, demonstrations and other non-commercial purposes. The exemptions were in place previously for foreign, imported vehicles whose home country rules may be different than those in the U.S.

The decision comes a day after Musk confirmed on a conference call with Tesla investors that the electric vehicle maker will begin a rollout of self-driving Tesla taxis in Austin, Texas, in June.

It’s not clear how the exemptions from National Traffic Safety Administration rules will effect Tesla specifically. The company has pinned its future on complete automation of its cars, but it is facing stiff competition now from rivals, especially China automaker BYD

The crash reporting rule being changed has drawn criticism from Musk as too burdensome and unfair. Tesla has reported many of the total crashes under the rule in part because it is the biggest seller of partial self-driving vehicles in the U.S.

Traffic safety watchdogs had feared that the Trump administration would eliminate the reporting rule. The transportation statement Thursday said reporting will be loosened to “remove unnecessary and duplicative” requirements but that the obligation to report crashes will remain.

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2 thoughts on “US to loosen rules on Tesla, other carmakers taking on China in race for self-driving cars

  1. From last week:

    “The Insurance Institute for Highway Safety took 14 semi-autonomous cars out on the road to see how they performed in seven safety measures, from driver monitoring and alerts to lane and steering adjustments, The Examiner explained.

    The automakers in the spotlight included many mainstream brands, such as Tesla, Ford, BMW, and Nissan — but the results were not all that comforting. Only one system was rated “acceptable,” while two were deemed “marginal.” The remaining 11 cars received poor ratings, including Tesla’s Autopilot system and its Full Self-Driving Beta.

    These computer-operated systems can control speed, braking, and steering. Their rapid addition to the highway rush hour comes with new safety concerns, as the self-driving features can be intentionally or accidentally misused. In response, the IIHS offers these ratings to make the roads safer for everyone — something that’s needed now more than ever. …”Some drivers may feel that partial automation makes long drives easier, but there is little evidence it makes driving safer,” IIHS President David Harkey said, per the outlet.”

    https://safety21.cmu.edu/2025/04/23/new-study-reveals-critical-flaw-in-teslas-self-driving-tech-little-evidence-it-makes-driving-safer/

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