Bloomberg News
US to Ease Rules Hindering Tesla’s Self-Driving Cybercab

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The Trump administration is taking steps that would make it easier for automakers to deploy-self driving cars without driver controls, a potential boon to the ambitions of Tesla Inc. and rivals looking to put robotaxis on U.S. roads in the near future.
Current rules require automakers that want to deploy self-driving cars designed without a steering wheel or brake pedals to seek an exemption from federal safety standards that effectively require that new cars have human driving controls. The National Highway Traffic Safety Administration will “streamline” that exemption process, which under current policy has resulted in lengthy processing times that can last years, the agency said in a letter posted to its website on July 13.
As a result of the changes, NHTSA “anticipates reaching decisions on most exemption requests within months rather than years,” NHTSA Chief Counsel Peter Simshauser said in the letter.
The move takes aim at one of the biggest regulatory hurdles facing Tesla’s plan to field its self-driving Cybercab in large numbers. The vehicle, revealed on a Hollywood studio lot last year, lacks a steering wheel and foot pedals, jeopardizing Tesla’s ability to introduce it without an exemption from the agency.
NEW: NHTSA will accelerate the safe development of automated vehicles by streamlining the exemption process for noncompliant automated vehicles, and announced today.
Read more: — nhtsagov (@NHTSAgov)
The vehicle is a key part of Tesla’s push into artificial intelligence and robotics that CEO Elon Musk has said are critical to the company’s future.
Tesla’s shares touched a session high and rose 1.5% as of 12:29 p.m. in New York.
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Tesla later this month plans to launch its initial robotaxi business in Austin, using self-driving Model Y SUVs overseen by remote operators. The company aims to eventually incorporate the purpose-built Cybercab into its fleet after Tesla begins producing them in large numbers next year.
Musk, who donated more than $250 million to help President Donald Trump’s re-election and until recently had led a sweeping push to slash government spending, has called for a federal approval process for autonomous vehicles.
Members of Trump’s transition team also planned to make creating a regulatory framework for autonomous vehicles a top priority, Bloomberg has reported.