Trump Administration Eases Crash Reporting Rules for Partial Self-Driving Cars, Boosting Tesla

The Trump administration announced new regulations that will significantly ease crash reporting requirements for automakers with Level 2 partial self-driving vehicles, such as Tesla. The Transportation Department stated that non-fatal accidents requiring a tow truck, without injuries, fatalities, or airbag deployments, will no longer need to be reported for Level 2 vehicles. Tesla, which accounts for the majority of Level 2 cars on U.S. roads, stands to benefit the most, prompting its stock to surge nearly 10%. Analysts believe this shift could obscure data on equipment defects and impact public transparency regarding self-driving car safety.

The National Highway Traffic Safety Administration (NHTSA) defended the changes, asserting they level the playing field and support innovation needed to compete with China’s autonomous vehicle advancements. Critics argue that excluding tow-away crashes from reporting, particularly for Tesla, could diminish oversight just as Tesla prepares to launch self-driving taxis in Austin, Texas. Meanwhile, companies with more advanced Automated Driving Systems, like Waymo, are still required to report such incidents.

Transportation Secretary Sean Duffy framed the move as a vital step to create a unified national framework for self-driving vehicles and streamline regulatory red tape. While Tesla and other Level 2 vehicle makers like Hyundai, Nissan, Subaru, and BMW are likely to benefit, watchdog groups warn the rollback may compromise consumer access to critical safety information.