Tesla Set to Gain Big from Relaxed Self-Driving Crash Reporting Rules
Despite the universal praise for an effort to level the playing field for several automakers with one another in the autonomous vehicle arena, this loosening of crash reporting rules looks set to serve Tesla disproportionately.
Based on the proposed guidelines, Tesla and other automakers that have incorporated the use of so-called Level 2 autonomy systems will not be obliged to report non-fatal accidents characterized only by the minutest of damages unless there have been resulting injuries, fatalities, or airbag deployments.
Such a move, according to the Department of Transportation, was part of a concerted effort to "streamline" regulations and allow U.S. firms the competitive edge against the threat posed by China in the race for autonomous driving applications.
In the opinion of industry analysts, disproportionate advantages are to be derived from this change by Tesla, already the company to beat in the Level 2 business.
Previously, Tesla had to report a large number of minor incidents, which Elon Musk argued presented an unfair image of the company's safety record. When it came to high-mileage exposure under partial self-driving techniques, Tesla vehicles had taken more miles than any of its competitors, naturally leading to a high number of incidents.
With these minor incidents of collision no longer needing reporting, Tesla can paint a much brighter picture regarding its safety performance. The change, comments Sam Abuelsamid of Telemetry Insight, would "significantly reduce" crashes reported by Tesla, thereby increasing consumer confidence and sales.
Tesla shares jumped around 10% in reaction to that announcement. Without these new crash reporting rules applying to fully autonomous vehicles operated by competitors like Waymo, however, Tesla's edge could further widen over such competitors in public perception.
NHTSA has insisted that the new rules are not biased toward any company or technology, but safety observers have raised the alarm. This is a slippery slope in which the watered-down reporting requirements could drown regulators and the public, making it hard to identify safety trends or shortcomings in self-driving systems.
Remarkably, this announcement is coinciding with Tesla's self-driving taxi fleet launch in Austin, Texas, where Waymo already operates. Musk has insisted that the Tesla cars are safer than the conventional ones, and this change in reporting just equalized things.
While ostensibly part of a larger tactical play to cement the U.S. position in autonomous driving, the sequence of events leading to regulatory change and the beneficiaries of such changes have injected vigor into discussions about favoritism and transparency. However, at this point, such rule relaxation would tip Tesla in its favor amid increasing competition across the globe and recent challenges to sales.
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