Auto regulatory watchdog loses staff—raising questions about Elon Musk’s influence

The National Highway Traffic Safety Administration (NHTSA) is the latest federal agency to lay off workers, as part of a sweeping number of federal job cuts initiated by DOGE under the new Trump Administration.

The details: On Monday, NHTSA—which is responsible for regulating the safety of vehicles in the U.S.—announced that it laid off 4% of the staff at the agency, as many debate the impact and legality of all the federal cuts that the Trump Administration says will make the government more efficient.

• An NHTSA spokesperson said the agency grew considerably under the Biden Administration, increasing by 30%, according to Bloomberg. 

• In fiscal 2024, NHTSA had 805 employees (according to a budget document submitted to Congress), an increase from 675 in 2023. 

What they’re saying: “Even with the cuts, the agency has “retained positions critical to the mission of saving lives, preventing injuries, and reducing economic costs due to road traffic crashes,” said an NHTSA Spokesperson, via Bloomberg.

Between the lines: The NHTSA layoffs have raised concerns among safety advocates who contend that the cuts could lead to an increase in car crashes. Others fear what might happen to ongoing vehicle probes, especially those involving Tesla, given that the EV maker’s CEO, Elon Musk, heads the Department of Government Efficiency (DOGE).  

• In October, NHTSA launched a probe into 2.4 million Tesla vehicles from the 2016 through 2024 model years, investigating the company's "Full Self-Driving" system after reports of crashes in low-visibility conditions, including one that killed a pedestrian.

• Two weeks before Trump assumed office, NHTSA opened a probe into 2.6 million Tesla vehicles due to reports of crashes involving a feature that allows users to move their cars remotely.

President Trump maintains that there are no conflicting interests in the federal cuts being facilitated by Musk through DOGE and that if some potential conflicts do arise, they will be addressed.  

Why it matters: At this point, it doesn’t appear that a 4% reduction in NHTSA staff will affect the agency’s ability to stay on top of safety concerns. However, Musk’s unpredictability (especially in his role with DOGE) could lead to additional cuts in key positions at NHTSA, which could create an array of problems for dealers, automakers, and car owners when it comes to addressing recalls and warranty issues.

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