US agency announces controversial change that could have big impact on road safety: 'The stakes couldn't be higher'

The Trump administration has announced a small yet significant rule change to accident reporting that could greatly benefit Tesla. 

As the Associated Press reported, the Department of Transportation announced that automakers will no longer be required to report certain non-fatal crashes. The move slightly alters a 2021 Standing General Order on crash reporting that requires automakers to report crashes involving fully autonomous vehicles as well as Level 2 driver-assist systems. 

However, the adjustment will apply only to partial self-driving vehicles that use Level 2 driving systems — like those Tesla employs. While other automakers also use Level 2 systems, "Tesla accounts for the vast majority on the road," according to the AP. 

These Level 2 systems involve a vehicle that can both steer and accelerate or decelerate in specific conditions, as Synopsys explained. In tandem with these systems, owners must be located in the driver's seat and be able to take over vehicle operation at any moment.  

Under the previous SGO, if a vehicle with a Level 2 driver assist system or above was involved in a crash that didn't result in a fatality but had an airbag deployment or was left inoperable and had to be towed, it was required to be reported within days, as The Verge reported.

Thanks to the latest amendment to the SGO, any crashes involving a Level 2 will no longer need to be reported unless the crash results in death, injury, or an airbag deployment, per the AP report.

Transportation Secretary Sean Duffy saw the softening of safety rules as a chance for American companies to match the competitiveness of international companies. 

"We're in a race with China to out-innovate, and the stakes couldn't be higher," Duffy said in a press release. "As part of DOT's innovation agenda, our new framework will slash red tape and move us closer to a single national standard."   

Sam Abuelsamid, VP for market research at Telemetry, noted that Tesla may be the biggest beneficiary of the changes to the SGO. 

"Tesla has long complained about the fact that the vast majority of SGO reports are from their vehicles and this will eliminate all of the reports that don't include a fatality or hitting a vulnerable road user," Abuelsamid told The Verge. 

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Beyond that, it may make it more difficult for Americans to obtain highly accurate information about Tesla's safety records. According to its first 2025 quarterly safety report, Tesla previously noted that vehicles using AutoPilot had driven over 7 million miles before experiencing an accident. This is a major uptick from the fourth quarter of 2024.  

On the flipside, according to the company's first-quarter earnings report, Tesla has seen a 20% decrease in total automotive revenue compared to the same period in 2024. 

Automakers such as BYD, Hyundai, and Ford, among others, are upping the pressure on Tesla by bringing their own electric vehicles to market as demand for eco-friendly and lower-maintenance vehicles surges. 

However, Tesla CEO Elon Musk has also compromised brand trust during his stint as a special adviser to the U.S. federal government, and Tesla dealerships across the globe have seen protests in response to his involvement in politics.

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