NHTSA to streamline ADS exemption in time for Tesla’s Cybercab launch

Under the Trump Administration, the National Highway Traffic Safety Administration is making it easier and quicker for automakers to deploy self-driving cars by “streamlining” the automotive driving systems (“ADS”) exemption process necessary for vehicles without a steering wheel or brake pedals.

Under the current standards mandated by the National Highway Traffic Safety Administration, any full self-driving vehicle for commercial use without driver controls must obtain an exemption under “Part 555” of the National Traffic and Motor Vehicle Safety Act. As part of its new mandate, NHTSA is taking a “dynamic and flexible approach to evaluate these exemptions” to allow the agency to process ADS and other exemptions “within months, rather than years.”

“NHTSA must improve its Part 555 processing times substantially to keep pace with the rapid innovation of the ADS industry and to ensure that exemptions remain effective tools for nurturing groundbreaking safety technologies,” the agency said in a notice on its website.

The news comes just in time for Tesla’s (NASDAQ:TSLA) Cybercab launch in Austin, Texas on June 22 and bolstered shares in Friday’s afternoon trading. Faced with a lengthy regulatory process, Tesla (NASDAQ:TSLA), and others including Alphabet’s (GOOG) Waymo, would have to potentially wait years to comply with NHTSA regulations.