Elon Musk's Cybercab Ambitions Just Got A Boost As NHTSA Eases Regulations For Autonomous Vehicles

The National Highway Traffic Safety Administration (NHTSA) announced it will be easing some regulations over autonomous vehicles as Elon Musk looks towards Tesla Inc.'s TSLA Cybercab.

What Happened: NHTSA is streamlining its exemption process for vehicles "To facilitate automated driving systems technology reaching its full potential," a statement released on Friday by the agency said.

The exemptions grant NHTSA the power to let automakers produce vehicles that do not comply with safety regulations, over a 2 to 3-year period, the statement said.

The agency would grant the exemptions under the 49 CFR (Code of Federal Regulations) Part 555. However, the agency concedes the current Part 555 may not be suitable for cars with ADS equipment to process exemptions in "a timely manner or overseeing the unique complexity involved in their operations."

NHTSA says it will be publishing "enhanced application instructions" to help manufacturers understand exemptions under the Part 555 for autonomous vehicles in the U.S.

Why It Matters: The updated terms from the agency come in at what could prove to be a crucial time for the automakers and companies involved in the Autonomous Vehicle sector. Current regulations require all vehicles in the U.S. to have a steering wheel and pedals, something which the Cybercab does not have.

Tesla is gearing up to roll out its robotaxi service in Austin to the public on June 22, Musk said in a tweet on social media platform X. Tesla will operate Model Ys as robotaxis initially.

The EV giant was officially named as an AV operator in Austin recently. However, the robotaxi is still listed as being in the "testing" phase.

Musk also recently hailed Austin as a better place to launch robotaxi operations in the midst of violent anti-ICE protests that led to bouts of vandalism of Alphabet Inc.'s GOOGL GOOG Waymo fleet.

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