Tesla rises over 3% to a new high, reports indicate that Trump's team seeks to abolish the requirement for accident reports on autonomous vehicles

On Friday, according to Reuters, the Trump transition team recently proposed to abolish the accident data reporting requirements established by the National Highway Traffic Safety Administration (NHTSA) for autonomous vehicles. The Trump transition team suggested in its 100-day automotive policy plan to eliminate the accident reporting requirements, which have led to "excessive data collection" and imposed additional burdens on automakers, especially in the rapidly evolving autonomous driving industry. Additionally, the transition team recommended "loosening" regulatory rules for autonomous vehicles and implementing foundational regulations to support industry innovation. The proposal has received support from Tesla and its CEO Elon Musk, and if the reporting requirement is abolished, Tesla would be a major winner. However, this has raised concerns about vehicle safety regulatory capabilities and consumer protection. It remains unclear whether the new Trump administration will adopt the recommendation to eliminate the reporting requirements. Boosted by the news, Tesla's stock rose more than 3.2% during trading on Friday, reaching an intraday record high of $431.60, with a market capitalization exceeding $1.385 trillion at one point. Since the U.S. election voting day on November 5, Tesla's cumulative increase has reached 71%, and it has risen 102% since the earnings report released on October 23. Accident Reporting Requirements for Autonomous Vehicles In 2021, NHTSA introduced the so-called "General Order," requiring automakers to report accident data involving Advanced Driver Assistance Systems (ADAS) or autonomous driving technology. If these technologies were activated in the 30 seconds prior to a collision, relevant data must be reported. This regulation aims to help regulators comprehensively understand the safety performance of autonomous driving technology, thereby identifying potential issues and taking corrective measures. Since the implementation of this rule, NHTSA has collected and analyzed over 2,700 accident data, a significant portion of which involves Tesla. According to NHTSA statistics, as of October 15, Tesla was involved in 40 out of 45 fatal accidents. This data has prompted NHTSA to investigate Tesla and has led to multiple vehicle recalls in 2023. For example, in 2023, fatal accidents involving Tesla's Autopilot feature included a collision between a Tesla and a trailer truck in Virginia, and a Tesla crashing into a fire truck in California. The key basis for NHTSA's investigation is the accident report data. If the accident reporting requirements are abolished, similar safety issues may not be identified and addressed in a timely manner. Tesla and Musk's Opposition Tesla and its CEO Elon Musk have long opposed NHTSA's accident reporting regulations. Tesla believes that the rule makes it appear "particularly prominent" in accident data, damaging the company's image. This transparency has led to public misunderstanding, especially when the data is used by regulators to emphasize the accident rate of Tesla vehicles. Tesla claims that other automakers have limited data collection capabilities, resulting in a much lower number of reported accidents compared to Tesla, obscuring the actual accident occurrence rate. Some industry experts also point out that Tesla's driver assistance technology is used by more consumers, and its high usage frequency naturally increases the likelihood of vehicles entering complex scenarios and causing accidents Other supporters of the repeal of the report mentioned that abolishing the report would alleviate the burden on businesses and provide more space for industry innovation. In addition, Musk mentioned during Tesla's earnings call that he hopes to establish a unified national approval process for autonomous driving in the United States to replace the current varying regulations across states. He believes that the current state-level regulatory environment is "very painful" and detrimental to industry development. Many experts and regulatory agencies express concerns Although Tesla and the Trump transition team support the repeal of this regulation, many experts and regulatory agencies have expressed concerns about it. Accident report data is not only used for safety assessments but also plays an important role in industry development. The NHTSA uses this data to identify the strengths and weaknesses of autonomous driving technology and provides a basis for policy-making. Furthermore, repealing the accident report regulation may further decrease consumer trust in autonomous driving technology. Experts point out that this could not only affect Tesla but also have a negative impact on the entire autonomous driving industry. Eliminating this requirement may slow down the improvement of industry transparency, thereby affecting consumer acceptance of autonomous driving technology.