Autonomous Vehicles May Reportedly be Released by the Trump Administration into U.S. Territory
Elon Musk, the visionary entrepreneur behind SpaceX and Tesla, is making a bold move into the robotaxi industry. As a top bureaucrat in the incoming Trump administration, Musk plans to launch a tesla stock robotaxi service via Tesla and hopes to pivot the company towards automation and driverless travel.
Musk's decision comes amidst a growing robotaxi industry, where federal policy has lagged behind. With the President-elect, Donald Trump, reportedly working towards a broader deployment of autonomous vehicles in America, and advisors developing a federal regulatory framework for self-driving vehicles, a more coherent and streamlined regulatory path for autonomous vehicles could be on the horizon.
Currently, companies can launch up to 2,500 self-driving cars per year under a granted exemption from the National Highway Traffic Safety Administration. However, this number is set to increase as car manufacturers push for a significant increase in the number of self-driving cars allowed annually.
Musk's move into the robotaxi industry is aimed at competing with companies like Google parent company Alphabet's robotaxi firm Waymo and General Motors' troubled robotaxi seller Cruise. In October, Musk unveiled a robotaxi prototype called the "Cybercab," which has no steering wheel or pedal. Musk expects Tesla to roll out "fully autonomous, unsupervised" driving in both Texas and California as early as 2026.
However, Musk's role in the upcoming administration could potentially raise concerns. Various ethics laws could limit Musk's ability to lead DOGE (Tesla and SpaceX) due to the numerous conflicts of interests posed by his businesses and their relationship with the federal government. Yet, the new Trump White House doesn't seem particularly concerned with these conflicts.
With Musk's alleged influential role in the administration, some expect Musk's regulatory troubles to decrease. As of October, Musk's companies were reported to be the subject of at least 20 different federal investigations. An incident involving an FSD-engaged Tesla that struck and killed a motorcyclist led to a National Highway Traffic Safety Administration probe, announced in October.
Under the Biden administration, Musk and his companies faced increased regulatory scrutiny, partially due to Tesla's focus on automation and Musk's dislike for rules. However, with the shift to the Trump administration, this scrutiny may lessen.
The robotaxi industry's growth is not limited to the US. German transport minister Volker Wissing announced the formation of a working group to develop a federal regulatory framework for autonomous vehicles, which could potentially be profitable for Elon musk, a friend and new top official under President Trump.
Meanwhile, rideshare giant Uber has ambitions of joining the robotaxi business and has partnered with Waymo and Cruise to do so. Broader action on autonomous vehicles would need to be authorized by Congress, and a bipartisan legislative measure is currently being discussed, though it's still in the early stages.
As the robotaxi industry continues to evolve, it will be interesting to see how the incoming Trump administration's plans, such as the potential elimination of the EV tax credit, will impact the industry and Elon musk's companies. One thing is certain: the future of transportation is looking increasingly autonomous.
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