Tesla’s plans for “unsupervised” Full Self-Driving (FSD) technology and robotaxis have sparked regulatory concerns. CEO Elon Musk announced plans to release unsupervised FSD in Texas and California by 2025 and start robotaxi production by 2026-2027.
What is Unsupervised FSD?
Unsupervised FSD could mean either:
- Level 4 autonomy (fully autonomous under predefined conditions)
- Level 3 autonomy (hands-off, eyes-off, with human takeover required occasionally)
Regulatory Implications
Tesla faces regulatory challenges in California, where it needs:
- Driverless testing permit
- Deployment permit
- Permits from the California Public Utilities Commission (CPUC) for ride-hailing
In Texas, regulations are more lenient, but Tesla may still need to notify the state DMV.
Robotaxi Safety Concerns
Tesla’s robotaxi design without steering wheel or pedals defies federal safety standards. To mass-produce, Tesla needs an exemption from the National Highway Traffic Safety Administration (NHTSA).
Challenges Ahead
- NHTSA has only granted one exemption (to Nuro) for low-speed autonomous delivery vehicles.
- General Motors and Amazon’s Zoox are still awaiting exemptions.
- NHTSA’s rule-making for AVs without human controls has been delayed.
Investors are skeptical, with Tesla’s stock falling 10% after the announcement.
