Trump team eyes overhaul of self-driving car rules — report

President-elect Donald Trump’s transition team has made federal rules for fully autonomous vehicles (AVs) a priority, according to a Bloomberg report that cited unnamed sources. The idea is to transform the current regulations and give the industry a unified framework to scale.

Why it matters: Right now, self-driving cars are stuck in a regulatory maze. Federal rules limit AV deployments to just 2,500 vehicles per manufacturer annually, and state laws vary wildly. This patchwork of rules has slowed progress for everyone, from legacy automakers to tech startups.

• Loosening these restrictions could give Tesla some serious tailwinds. CEO Elon Musk has staked the company's future on robotaxis. He promised vehicles without steering wheels or pedals by 2026. Federal clarity could clear the path for his ambitions. Tesla shares surged 8 per cent in pre-market trade on Monday after the news broke.

• “Musk’s significant influence in the Trump White House is already having a major influence and ultimately the golden path for Tesla around Cybercabs and autonomous is now within reach with an emboldened Trump/Musk strategic alliance playing out in real time and very in line with our thesis,” said Wedbush analyst Dan Ives.

• But this isn’t just about Tesla. Companies like GM’s Cruise and Waymo are also eager for rules that let them scale. A more favorable regulatory structure could unlock billions in investments across the AV industry.

Between the lines: Self-driving technology is a global race, and the U.S. risks falling behind. China is rapidly deploying AVs under centralized policies, giving its companies an edge. 

• Yet — high-profile AV failures — like a Cruise robotaxi dragging a pedestrian in San Francisco — show the risks of moving too fast. Public trust will hinge on whether new rules prioritize safety.

• Millions of driving jobs could disappear as automation takes over. Without planning, AV tech might only serve wealthy, urban markets — leaving others behind.

Why now: Federal AV legislation has been stalled for years over safety concerns and liability disputes. But Trump’s pro-business stance — and his team’s ties to industry heavyweights like Musk — could bring a renewed push to the table.

What’s next: The first challenge for the Trump administration will be to reconcile the speed industry leaders want with the caution that public safety demands. Early actions may raise deployment caps and sync state rules. But these are only stepping stones. The U.S. will have to define its role in a fast-changing global market and cope with the societal shifts that come with it.

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