Trump’s support for Elon Musk
Tesla has led to the repeal of regulations that were hindering their operations
Is the impact of Trump’s endorsement finally showing?
Tesla CEO Elon Musk’s longstanding support for U.S. President-elect Donald Trump appears to be paying off as regulations hindering Tesla’s operations are being rolled back. Musk, a prominent supporter of Trump’s presidential campaign, has long been vocal about backing the Republican leader, even contributing substantial funds. With Trump’s administration looking to make significant changes, the impact on Tesla’s business is becoming more evident.
Disproportionate Impact on Tesla’s Data Collection
The National Highway Traffic Safety Administration (NHTSA) reported that of the 45 fatal autonomous vehicle crashes recorded through October 2024, 40 involved Tesla vehicles, contributing to a significant share of all serious autonomous vehicle crashes. While the regulation requires that Level 2 systems be engaged within 30 seconds of a collision, Tesla vehicles were disproportionately impacted as they account for a larger market share of autonomous cars.
Musk has repeatedly pointed out that Tesla vehicles are more likely to be involved in accidents due to the brand’s high volume of EVs on the road. While other automakers may not collect crash data after incidents, Tesla has consistently reported this data to NHTSA, leading to investigations into other manufacturers and recalls for several companies. Tesla has provided over 1,500 reports from over 2,700 crashes submitted to NHTSA.
Most of the accident vehicles are Tesla after Elon Musk voiced opposition
However, some have pointed out that the system is disadvantageous to Tesla, as many of its vehicles are equipped with Level 2 autonomous driving technology, and the company has a high market share of electric cars in the United States. Also, unlike some manufacturers that do not collect collision data after an accident, Tesla has been accumulating data related to the accident. As a result, Elon Musk criticized the system, saying that it “targets” Tesla and has called for its abolition.
Since the rule was enacted in 2021, the NHTSA has reportedly received over 2,700 crash data. This has led to 10 investigations into six companies and four recalls for nine companies. Tesla reportedly reported over 1,500 of the 2,700 crash data to the agency.
Autonomous Vehicles and Future Plans
As Tesla moves toward commercializing fully self-driving vehicles by 2025, the potential dismantling of this regulation has drawn significant attention. While the regulation was seen as essential to understanding the causes of autonomous vehicle crashes, its abolition could streamline Tesla’s operations and enhance its ability to bring autonomous technology to the market without the regulatory hurdles that have slowed progress in the past.
Industry analysts point out that while Tesla benefits the most from the decision, the Alliance for Automotive Innovation (AAI), representing other automakers, has criticized the regulation. Critics argue that eliminating this data collection could hinder the government’s ability to investigate and regulate autonomous driving technologies adequately. Despite this, the regulation change is still drawing mixed reactions, with some questioning whether Musk played a direct role in pushing for the system’s repeal. Meanwhile, incidents like a Tesla vehicle’s failure to recognize a train earlier this year have underscored the need for continued oversight of autonomous driving systems.
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