Trump Make Restriction on Musk by a new Rule.

The Trump transition team has reported to removing a federal rule of demanding car manufactures to report crashes also include advanced driver assistance system (ADAS) or self-driving technology if they occurs in 30 seconds of accident.

Musk and Trump Relationship:

Elon Musk’s Tesla also involved in this rule. Elon Musk, the world richest man alive. Donald Trump and Elon Musk present a good relationship in recent U.S., elections. Musk is a billionaire openly support Trump campaign and also give financial help. Musk support Trump party donations, like he donate $44million to pro-Trump super PACs and public validations of Trump’s policies.  

Musk support Trump’s promises to reduce cost especially in tech and energy sector. Trump’s also signed to easy rules on self-driving cars that is a beneficial point for Elon Musk’s Tesla.

While their relations show mutual benefits but also have been criticism for corporate interest of public. Here is a detailed explanation of why this rule effect on Tesla:

Background of this Rule:

This rule established by National Highway Traffic Safety Administration (NHTSA). It order on automakers to submit data in details on accidents. It include crashes involves technologies like Tesla’s Autopilot or other driver assistance system. By using this data they access the safety and performance of these automated system.

The proposed Change:

The Trump transition team work is to shapes the administration automotive policies that characterized the rule. They discussed that it leads to excessive data collection that creates logistics challenges for manufacturing companies without clear data safety benefits.

Industry and Political Implications:

• Tesla’s Position: Tesla by Elon Musk is a main focus of rule. They claims that it forces under regulatory pressure. The company has reported over 1,500 crashes under this command.
• Broader Industry Impact: The associations for automotive Innovations, represents major automakers and also criticized the rule. They debate that the requirement hinders innovation and unfair target companies with latest technology.
• Safety Concern: The NHTSA and safety department gave warning that scrapping the rule could weaken the ability to change and improve automated driving system.
• Strategic Context: The suggestion of Trump’s broader policies highlight the reduced federal to inspire innovation and economic growth.

Potential Outcomes:

If this rule applicable, the removal of this rule make changes like:

• It lower compliance costs for automakers particularly those invested in ADAS and self-driving vehicles.
• It makes it more difficult for regulations and the public to assess the safety of this technologies.
• It leads to a less clear environment that regards the performance of automated system.

Conclusion:

Overall, this rule is not expected permanent, and it may impact on Tesla specifically less sales. But with the passage of time this rule is not much stricter than now. Because of good relation of Trump with Elon Musk, Musk can convince to dismissed this rule. Elon Musk is a very big fish in market and this small rules can’t effect this shark.