The Trump administration is relaxing regulations to assist U.S. automakers, including Tesla, in developing self-driving cars to better compete with Chinese companies. The U.S. Department of Transportation announced Thursday that companies working on autonomous vehicles can now apply for exemptions from certain federal safety rules for testing purposes. In addition, the department plans to simplify crash reporting requirements related to self-driving software, which Elon Musk has criticized as overly burdensome, and work towards a unified set of national rules for autonomous vehicles to replace the current patchwork of state regulations.
Transportation Secretary Sean Duffy emphasized the importance of staying competitive with China, stating, “We’re in a race with China to out-innovate, and the stakes couldn’t be higher.” He added that the new framework aims to reduce bureaucracy and move toward a national standard.
Under the new exemptions, U.S. automakers will be allowed to bypass certain safety rules for self-driving vehicles, but only if they are used for research, demonstrations, or other non-commercial activities. These exemptions have previously been granted to foreign vehicles, where their home country’s regulations differ from those in the U.S.
The announcement follows Tesla’s confirmation that it will launch a fleet of self-driving taxis in Austin, Texas, by June. While it’s unclear exactly how the new exemptions will impact Tesla, the company is working towards fully autonomous vehicles but is facing intense competition from Chinese automaker BYD.
One of the key changes is the modification of the crash reporting rule, which Musk has long argued is unfair and too demanding. Tesla, being the largest seller of semi-autonomous cars in the U.S., has been required to report many crashes under this rule. Traffic safety advocates had been concerned that the Trump administration would eliminate the reporting requirement entirely, but the Department of Transportation clarified that it would remain, with a focus on removing unnecessary or redundant requirements.
