Tesla Inc (NASDAQ: TSLA) Shares have soared in recent days on progress made with the company’s autonomous vehicle vision. A US senator could chill the rally with a bill aimed at disrupting self-driving vehicles.
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Senator targets Tesla with new bill
Sen. Ed Markey (D-Mass.) introduced a new bill focused on self-driving vehicles, with possible language aimed directly at Tesla FSD.
Called the “Stay in Your Lane Act,” the new bill would require car companies working on Level 2 and higher self-driving systems to face restrictions for certain road types and conditions, such as weather and geographic locations, as reported by The Verge.
Tesla is allowing FSD to be used on roads across the country without restrictions, something the bill could put an end to. The bill identifies operational design domains as conditions that must be met before autonomous functions can be used.
“Self-driving cars don’t pose a danger in the distant future — they pose an urgent security threat today,” Markey told The Verge. “Too often, some car companies introduce autonomous driving features without responsible restrictions on when and if they cannot be used, leading to avoidable injuries and deaths.”
The senator said the bill would ensure that car companies can only use autonomous features where the technology can handle it, which would help improve public safety.
General Motors Co (NYSE:GM And Ford Motor Co (NYSE:F) are mentioned in the bill as companies that use Level 2 systems and limit where drivers can safely operate autonomous functions.
Citing Ford and GM as positive examples and Markey’s quote about “certain car companies” could indicate that the bill could be aimed at Tesla.
Markey’s bill would cause the National Highway Traffic Safety Administration (NHTSA) to fine companies that failed to adhere to the operational design domains outlined therein.
In October, Markey was one of several senators calling for an investigation into Tesla FSD over safety issues with vehicles that failed to detect railroad crossings.
Also read: Tesla’s train track problem: ‘You’d think they could reliably detect this stuff’
What’s next
Congress, which is majority-controlled by Republicans, would find Markey’s bill more difficult to pass, but members on both sides of the political spectrum have spoken out against autonomous vehicles in recent years.
Sen. Josh Hawley (R-Mo.) announced plans in September to introduce a bill that would change the rules for autonomous vehicles.
Hawley said autonomous vehicles are “terrible for working people” and that “only humans should drive cars and trucks.”
The senator was reportedly working on a bill titled the Autonomous Vehicle Safety Act. The bill was primarily intended to target autonomous vehicles that would take jobs away from taxi and truck drivers and not necessarily the autonomous vehicle features that vehicle owners could use themselves.
President Donald Trump spoke out against autonomous vehicles ahead of winning the 2024 elections.
“Do you like autonomous driving? Does anyone like an autonomous vehicle? You know what that is? Right? When you see a car driving? Some people do, I don’t know. A little disturbing to me, but we’re going to stop the autonomous vehicles from driving on America’s roads,” Trump said in October 2024.
Trump’s friendship and political support from Tesla’s CEO Elon Musk may have softened the president’s opposition to autonomous vehicles.
The president also appointed Tesla critic Jonathan Morrison to direct the NHTSA, which could provide stricter regulations for autonomous vehicles and features.
News of the bill comes after a ruling in California said Tesla’s FSD and Autopilot had misleading marketing. Tesla is facing a possible 30-day sales and production ban in the state.
Musk has emphasized that Tesla could reach a valuation of $20 trillion or more in the future if plans for Tesla FSD, robotaxis and the Optimus humanoid robot go as planned.
The Democratic-led bill faces hurdles in Congress, but bipartisan concerns about autonomous vehicles could help it gain broader support.
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Photo: Tesla FSD Image via Shutterstock
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