Former Rep. Sean Duffy (R-Wis.), and President-elect Donald Trump‘s pick to lead the Department of Transportation, pledged Wednesday to maintain rigorous oversight of Boeing Co. BA and continue safety investigations into Tesla Inc. TSLA during his Senate confirmation hearing.
What Happened: Duffy told the Senate Commerce Committee that Boeing needs “tough love” as it grapples with recent safety failures, including January 2024’s Alaska Airlines door panel blowout incident involving a 737 Max 9 aircraft.
“We have to make sure they are implementing their safety plan,” Duffy said, emphasizing his commitment to working with the Federal Aviation Administration to restore global confidence in the aircraft manufacturer.
The former Wisconsin congressman also committed to allowing the National Highway Traffic Safety Administration to proceed with its investigation into Tesla’s Full Self-Driving software. The probe, launched last October, covers approximately 2.4 million vehicles following four reported crashes.
When questioned by Sen. Ed Markey (D-Mass.) about potential conflicts given Tesla CEO Elon Musk‘s status as a Trump campaign donor, Duffy emphasized his independence. “I commit to this committee and to you that I will let NHTSA do their investigation,” he said, noting he hasn’t met industry executives.
Why It Matters: Duffy also signaled support for reforming highway funding to capture revenue from electric vehicle users, who currently don’t contribute to the Highway Trust Fund through gas taxes. This stance aligns with Trump’s previously announced plans to reshape EV policies, including the potential elimination of consumer tax credits.
The nomination comes as the transportation sector faces multiple challenges, from aviation safety concerns to evolving autonomous vehicle regulations. If confirmed, Duffy would oversee critical agencies including the FAA, NHTSA, and Federal Railroad Administration, with Trump tasking him to usher in what he calls “The Golden Age of Travel.”
Market analysts at Wedbush Securities have noted that a Trump presidency could present headwinds for the broader EV industry, particularly affecting startups like Rivian Automotive Inc. RIVN and Lucid Group Inc. LCID if existing incentives are rolled back.
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