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Federal Self-Driving Car Policy Gains Momentum Under Trump Team

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Elon Musk listens as US President-elect Donald Trump speaks during a House Republicans Conference meeting at the Hyatt Regency on Capitol Hill on November 13, 2024 in Washington, DC. Allison Robbert-Pool/Getty Images

The push for federal regulations on self-driving cars is gaining traction, with President-elect Donald Trump's transition team signaling support for creating a nationwide framework for autonomous vehicles.

This development is expected to significantly benefit Tesla, whose CEO, Elon Musk, has long staked the future of the electric vehicle maker on the promise of fully autonomous cars.

Elon Musk Pushes for Federal Self-Driving Car Policies

Currently, the United States has a fragmented approach to self-driving car regulation, with states individually setting laws that govern the testing and use of autonomous vehicles.

This patchwork system has been a challenge for companies like Tesla, which have to navigate a maze of state-by-state rules.

Musk, who has been vocal about the need for a federal approach, has expressed frustration with this decentralized regulatory environment, calling it "incredibly painful" for companies trying to innovate.

According to Bloomberg, under the new Trump administration, Musk could have a significant influence in shaping the future of autonomous driving.

As a major supporter and donor to Trump's campaign, Musk has secured a position that could give him the leverage needed to push for federal policies that streamline the approval process for autonomous vehicles.

Trump has also appointed Musk to lead a new Department of Government Efficiency initiative, a non-governmental group aimed at reducing bureaucratic obstacles and regulatory burdens.

Musk has long advocated for federal rules that would allow autonomous vehicles to be tested and deployed without state-specific restrictions. He has also voiced his support for laws that would allow cars to be designed without traditional driving controls, such as steering wheels and foot pedals.

This would pave the way for Tesla's plans to produce autonomous "robotaxis" or "Cybercabs," starting in 2026. Tesla's vision includes a fleet of self-driving cars capable of operating without human intervention, a far-reaching goal that would transform the auto industry.

However, there are still significant technological and legal hurdles to overcome. Tesla has faced criticism for its current "Full Self-Driving" (FSD) technology, which, despite its name, still requires human oversight while the car is on the road.

Critics argue that Tesla is years behind its competitors, such as Waymo, in terms of fully autonomous technology. In California, Tesla has logged just 562 miles of autonomous vehicle testing, compared to Waymo's 13 million miles.

Moreover, even with federal regulations in place, Tesla faces challenges in terms of insurance and liability.

The company currently blames drivers for accidents involving its FSD system, but once the vehicles are fully autonomous, Tesla will likely bear full responsibility for any crashes. This could lead to complex legal issues, as self-driving cars will require new insurance frameworks that do not currently exist.

Full-Scale Launch of Tesla's Self-Driving Cars

Despite these obstacles, Musk remains optimistic, betting that self-driving technology will revolutionize the transportation industry.

He has claimed that Tesla will have fully autonomous vehicles ready for deployment as early as 2026, with an affordable price tag for consumers.

The company's stock has surged since the election, with investors hopeful that a friendlier regulatory environment will help accelerate the development of autonomous vehicles, Reuters said.

In addition to Musk's influence, the Trump administration is also considering the appointment of Emil Michael, a former executive at Uber, to head the Department of Transportation, which oversees the National Highway Traffic Safety Administration (NHTSA).

NHTSA plays a key role in regulating vehicle safety and could play a central role in clearing the regulatory path for Tesla's self-driving cars.

Although efforts to pass federal laws regulating autonomous vehicles have faltered in the past, there is renewed momentum under the Trump administration. A bill to allow a larger number of autonomous vehicles on the road, for example, has repeatedly failed in the Senate but could gain new life with a Republican-controlled Congress.

The outcome of these legislative efforts could determine the future of self-driving cars in the US and shape the way companies like Tesla operate in the years to come.

With support from the new administration, Tesla and other companies in the autonomous vehicle space may soon see the regulatory changes they've long pushed for, potentially transforming the future of transportation.

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