NEW YORK (AP) 鈥� Rule changes announced by the Trump administration this week could allow automakers to report fewer crashes involving self-driving cars, with Tesla potentially emerging as the main beneficiary.
The Transportation Department announced Thursday that it will no longer require automakers to report certain kinds of non-fatal crashes 鈥� but the exception will apply only to partial self-driving vehicles using so-called Level 2 systems, the kind Tesla deploys. Tesla CEO Elon Musk had complained the old reporting rules cast his company in a bad light.
If Tesla and other automakers are required to report fewer crashes into a national database, that could make it more difficult for regulators to catch equipment defects and for the public to access information about a company's overall safety, auto industry analysts say. It will also allow Tesla to trumpet a cleaner record to sell more cars.
鈥淭his will significantly reduce the number of crashes reported by Tesla,鈥� said auto analyst Sam Abuelsamid at Telemetry Insight. Added Dan Ives of Wedbush Securities, noting that Tesla rival Waymo won鈥檛 get an exception, 鈥淭his is a win for Tesla, a loss for Waymo.鈥�
Tesla stock soared nearly 10% Friday on the rule changes. Wall Street analysts, and Musk critics, have said that Musk鈥檚 role as an adviser to President Donald Trump could put Tesla in position to benefit from any changes to regulations involving self-driving cars.
Other car makers such as Hyundai, Nissan, Subaru and BMW make vehicles with Level 2 systems that help keep cars in lanes, change speed or brake automatically, but Tesla accounts for the vast majority on the road. Vehicles used by Waymo and others with systems that completely take over for the driver, called Automated Driving Systems, will not benefit from the change.
The National Highway Traffic Safety Administration, which enforces vehicle safety standards, said the new rules don鈥檛鈥� favor one type of self-driving system over another, and that raft of changes it announced will help all self-driving automakers.
鈥淣o ADS company is hurt by these changes,鈥� the agency said in statement to The Associated Press, using the acronym for Automatic Driving System. It added that the changes also make sense, 鈥淲ith ADS, no driver is present meaning stronger safety protocols are needed.鈥�
Waymo declined to comment for this story. The AP reached out to Tesla but did not receive a reply.
Under the change, any Level 2 crash that is so bad it needs a tow truck to come will no longer be required to be reported if it doesn鈥檛 result in death or injury or air-bag deployment. But if a tow truck is called for crashes of vehicles using ADS, it has to be reported.
The vast majority of partial self-driving vehicle crashes reported under the old NHTSA rules involved Teslas 鈥� more than 800 of a total 1,040 crashes in the past 12 months, according to an AP review of the data. It鈥檚 unclear how many of those Tesla crashes required the vehicles to be towed because a column requesting that information in the database is mostly blank.
The relaxed crash rule was part of several changes described by the Transportation Department as a way to 鈥渟treamline鈥� paperwork and allow U.S. companies to better compete with the China in the race to make self-driving vehicles. The department said it would also move toward national self-driving regulations to replace a confusing patchwork of state rules.
鈥淲e鈥檙e in a race with China to out-innovate, and the stakes couldn鈥檛 be higher,鈥� said Transportation Secretary Sean Duffy on Thursday. 鈥淥ur new framework will slash red tape and move us closer to a single national standard.鈥�
Traffic safety watchdogs had feared that the Trump administration would eliminate the NHTSA reporting requirement completely.
The package of changes came days after Musk confirmed on a conference call with Tesla investors that the electric vehicle maker will begin a rollout of self-driving Tesla taxis in Austin, Texas, in June. Waymo, which is owned by Google parent Alphabet, already has cybercabs available in that city and several others.
Musk has argued that the previous reporting requirements were unfair since Tesla vehicles all use its partial self-driving systems and therefore log more miles than any other automaker with such technology. He says that his cars are far safer than most and save lives.
Tesla sales have plunged in recent month amid a backlash against Musk鈥檚 backing of far-right politicians in Europe and his work in the U.S. as head of Trump鈥檚 government cost-cutting group. The company has pinned its future on complete automation of its cars, but it is facing stiff competition now from rivals, especially China automaker BYD.
Bernard Condon, The Associated Press
