Proposed Elimination of Vehicle Accident Reporting Rule

Investing.com — The transition team for the Trump administration is recommending the elimination of a vehicle accident reporting rule. This rule has faced opposition from Tesla (NASDAQ:TSLA), the electric vehicle company owned by Elon Musk, as per a document obtained by Reuters sources.

Potential Impact on Vehicle Safety

Removing this rule could affect the government's ability to investigate and regulate the safety of vehicles equipped with automated-driving systems. Elon Musk, currently the wealthiest individual globally, contributed over $250 million to Trump's successful presidential campaign in November.

Favorable Changes for Tesla

The discontinuation of the crash-disclosure provision would particularly benefit Tesla. Under the current regulations, the company has reported over 1,500 crashes to federal safety regulators, leading to multiple investigations by the National Highway Traffic Safety Administration (NHTSA). Three of these investigations were initiated based on the reported data.

Transition Team's View

The proposal for eliminating the crash-reporting rule comes from a transition team developing a 100-day strategy for automotive policy. This team described the current rule as a mandate for "excessive" data collection, according to the document seen by sources. Neither Musk nor Tesla have responded to requests for comments on this issue.

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