Tesla Could Be the Big Winner as New Rules Mandate Reporting of Self-Driving Crashes

The rule modifications unveiled by the Trump administration earlier this week might enable car manufacturers to document less data about accidents related to autonomous vehicles, which could particularly benefit Tesla.

On Thursday, the Transportation Department stated that they would cease mandating automakers to report specific types of non-fatal accidents; however, this exemption will be applicable solely to partially autonomous vehicles equipped with what’s known as Level 2 systems—the type used by Tesla. Tesla's CEO, Elon Musk, had previously argued that the previous reporting requirements unfairly portrayed his company negatively.

If Tesla and other car manufacturers are mandated to report fewer accidents to a national database, this might complicate regulators' ability to identify equipment flaws and hinder the public’s access to comprehensive data regarding a company's safety performance, according to automotive industry experts. Additionally, this would enable Tesla to highlight their improved accident statistics as part of their marketing strategy to boost sales.

This will considerably decrease the crash reports from Tesla," stated automotive analyst Sam Abuelsamid at Telemetry Insights. Dan Ives from Wedbush Securities pointed out that Tesla’s competitor, Waymo, wouldn't receive an exemption either, commenting, "This outcome benefits Tesla but is disadvantageous for Waymo.

Tesla's shares jumped about 10% on Friday due to the regulatory adjustments. Analysts on Wall Street along with critics of Musk argue that his advisory capacity for President Donald Trump might place Tesla in a favorable spot to gain from potential modifications to rules concerning autonomous vehicles.

Other automakers like Hyundai, Nissan, Subaru, and BMW produce vehicles equipped with Level 2 systems that assist in keeping cars within their lanes, adjusting speeds, or applying brakes autonomously; however, Tesla dominates the market significantly. Cars utilized by Waymo and similar entities featuring systems that entirely assume control of driving tasks—referred to as Automated Driving Systems—will not be impacted by this modification.

The National Highway Traffic Safety Administration, responsible for enforcing vehicle safety regulations, stated that the updated guidelines do not privilege any particular kind of autonomous driving technology. They also mentioned that these modifications would support advancements across the entire industry of self-driving car manufacturers.

“The firm stated in an AP interview, ‘No harm comes to the ADS company due to these modifications,’” the administration commented. They further noted that the adjustments were logical: “Since no driver operates with ADS systems, stricter safety measures become essential.”

Waymo chose not to provide comments for this article. The AP attempted to contact Tesla but did not get a response.

With this modification, any Level 2 accident severe enough to necessitate a tow truck will no longer have to be documented unless it leads to fatalities, injuries, or airbag activation. However, collisions involving vehicles equipped with Automated Driving Systems (ADS) that require a towing service must still be reported.

Most of the reported accidents involving partially autonomous driving systems over the last year were linked to Teslas, with around 800 out of approximately 1,040 incidents recorded under the previous NHTSA guidelines, as per an analysis conducted by the Associated Press. However, it remains unknown how many of these Tesla-related collisions resulted in vehicles needing to be towed since the relevant field for this detail in the database often lacks entries.

The lenient crash regulation was among multiple alterations outlined by the Transportation Department aimed at "simplifying" documentation processes and enabling American businesses to more effectively contend with China in the development of autonomous cars. The department mentioned they were progressing towards establishing nationwide guidelines for self-driving vehicles to supersede the current inconsistent array of state laws.

“China and we are competing to innovate more effectively, and this competition has significant implications,” stated Transportation Secretary Sean Duffy on Thursday. “The new guidelines aim to reduce bureaucratic hurdles and bring us nearer to implementing a unified nationwide standard.”

Safety monitors were concerned that the Trump administration might do away with the NHTSA reporting mandate entirely.

The set of modifications was announced just days following Musk’s confirmation during a conference call with Tesla shareholders. He stated that the company plans to initiate the deployment of self-driving Tesla vehicles as taxis in Austin, Texas starting in June. Meanwhile, Waymo, under Alphabet Inc., which is Google’s parent company, already offers autonomous taxi services in this city along with multiple other locations.

Musk contends that the former reporting standards were unjust because Tesla’s vehicles employ their own partially autonomous driving systems, leading them to accumulate more mileage compared to other car manufacturers using similar technologies. He asserts that his vehicles are significantly safer and help prevent accidents, thus saving lives.

Recently, Tesla's sales have dropped significantly due to growing opposition towards Elon Musk's support for right-wing European politicians and his role as the leader of President Trump's cost-reduction task force in the U.S. The firm is banking on fully autonomous vehicles for growth; however, they face tough rivalry, particularly from China-based BYD.

READ MORE: Tesla might gain the greatest advantage from the newly implemented regulations requiring the disclosure of self-driving vehicle accidents.

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