The second Trump administration may look to improve the regulatory environment for driverless cars as a means to accelerate development and foster innovation in the sector, according to a report.
Citing anonymous sources, Bloomberg reported on Sunday that members of Donald Trump’s transition team have informed advisers that the new administration plans to prioritize the establishment of federal rules for fully self-driving vehicles within the Transportation Department. On Monday, Trump also nominated former Wisconsin congressman and recent Fox Business co-host Sean Duffy to lead the department.
Some progress on self-driving cars has already been made at the federal level. NHTSA in 2022 finalized a rule that allowed cars devoid of a steering wheel and pedals to meet safety standards, though under the same rule manufacturers are still limited to deploying just 2,500 self-driving vehicles annually under an approved exemption. Manufacturers also face changing rules in different states.
Reducing hurdles for self-driving cars would benefit one of Trump’s biggest donors, Elon Musk, who as Tesla CEO wants to start mass production of self-driving vehicles devoid of a steering wheel and pedals as soon as 2026. Tesla in October displayed the Cybercab and Robovan self-driving vehicles, which the company wants to offer to both private and fleet buyers.
Trump also wants Musk to head an outside advisory group aimed at improving government efficiency, alongside former GOP presidential candidate Vivek Ramaswamy.
The Trump administration will reportedly also look to eliminate the current federal tax credits on electric vehicles. Reuters reported on Nov. 14 that Trump’s transition team is discussing the move and that Tesla would support it, as the company sees its rivals as being worse off without the credit.
