
U.S. Eases Rules to Help Tesla, Others Compete in Self-Driving Tech
The U.S. government is making it easier for automakers like Tesla to test self-driving cars, in a move aimed at keeping pace with China, according to the Associated Press.
On Thursday, the Transportation Department said it will allow U.S. companies to apply for exemptions from some federal safety rules when testing self-driving vehicles. The department also plans to simplify crash reporting requirements, a system Elon Musk has often criticized as overly complicated. Officials also want to move toward a single national standard for self-driving regulations, replacing the current patchwork of different state rules.
“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 policy lets automakers request to bypass some safety standards if the vehicles are used only for research, demonstrations, or other non-commercial purposes. A similar system had been in place before for imported cars that followed different safety rules in their home countries.
The announcement comes just one day after Musk told Tesla investors that the company plans to launch its self-driving taxi service in Austin, Texas, starting in June.
It’s not clear yet how Tesla will directly benefit from the changes, but the company’s future depends heavily on perfecting self-driving technology.
Meanwhile, the government confirmed it will keep crash reporting requirements in place, but promised to remove “unnecessary and duplicative” rules. Safety advocates had worried that reporting might be scrapped entirely, but for now, companies like Tesla will still have to report incidents, just with fewer hurdles.
Shares of Tesla have surged this week, currently up 9.43% on Friday, and up 22.58% for the week.