The National Highway Traffic Safety Administration (NHTSA) has introduced several policy changes aimed at accelerating the development and deployment of autonomous vehicles in the United States. The new Automated Vehicle (AV) Framework, announced last week by U.S. Secretary of Transportation Sean P. Duffy, is designed to reduce regulatory red tape and prioritize innovation—giving companies like Tesla an advantage as they race toward commercializing self-driving technology.
Under the revised framework, NHTSA will reduce the crash reporting requirements for vehicles equipped with advanced driver assistance systems (ADAS) and autonomous driving systems (ADS). The streamlined reporting process is expected to make it easier for automakers to bring Level 4 self-driving vehicles—such as robotaxis—to public roads without the previous burden of duplicative and detailed crash submissions.
While NHTSA will maintain its Standing General Order for critical incidents, it will now focus only on crashes that meet higher thresholds for property damage or severity.
Another major change is the expansion of the Automated Vehicle Exemption Program. Previously available only to imported vehicles, the program now includes domestically manufactured autonomous vehicles. This adjustment allows companies like Tesla, whose upcoming Cybercab robotaxi is being built in Texas, to deploy vehicles that do not fully comply with traditional Federal Motor Vehicle Safety Standards (FMVSS), such as the absence of steering wheels and pedals.
The timing could not be better for Tesla. The company plans to launch its robotaxi service in Austin, Texas, as early as this summer, using Model Y and Model 3. With these regulatory updates, Tesla will face fewer barriers in rolling out its new self-driving model, the Cybercab, which is expected to begin production in 2026 or 2027.
Federal officials have framed the move as a strategic requirement to compete with China. “We’re in a race with China to out-innovate, and the stakes couldn’t be higher,” said Secretary Duffy. The updated framework aims to simplify the patchwork of state regulations and move closer to a single national standard for autonomous vehicles.
However, the changes have not been without controversy. Some transportation safety experts have expressed concerns about transparency, especially as the crash reporting requirements are relaxed. Additionally, questions have been raised about potential conflicts of interest, given Musk’s dual role as Tesla CEO and senior advisor within the Department of Government Efficiency (DOGE), a position he was appointed to under President Trump.
