Tesla and Waymo Face Potential Regulatory Hurdles: NHTSA Nominee Advocates for Stronger Federal Oversight on Self-Driving Tech
On July 15, 2025, Jonathan Morrison, President Trump's nominee to lead the National Highway Traffic Safety Administration (NHTSA), testified before the Senate Commerce Committee, emphasizing the need for proactive federal regulation of autonomous vehicles (AVs) to foster public trust and ensure safety.
Morrison stated that "NHTSA cannot sit back and wait for problems to arise with such developing technologies, but must demonstrate strong leadership," signaling a shift toward more active oversight rather than a hands-off approach.
This stance comes amid ongoing NHTSA investigations into Tesla's Full Self-Driving (FSD) system—involving 2.4 million vehicles—and Waymo's robotaxis, which faced scrutiny for potential traffic law violations and a recall of 1,200 cars in May 2025.
While the Trump administration has generally favored easing regulations to accelerate AV deployment—such as streamlining exemption reviews in June 2025 and reducing crash reporting requirements in April—this nominee's comments suggest a more balanced or stringent path ahead.
Industry groups, including automakers and tech firms, had urged faster rollout earlier in the year, arguing that regulatory hurdles impede progress.
However, Morrison's focus on building trust through robust rules could introduce delays, higher compliance costs, or stricter safety standards for leaders like Tesla and Waymo.
Why This Could Pose a Threat to Tesla and Waymo
Increased Scrutiny and Compliance Burdens: Tesla, under Elon Musk, has pushed boundaries with its FSD beta software, often releasing updates amid NHTSA probes into crashes and software flaws
Waymo, Alphabet's AV unit, has expanded operations but faced recalls and investigations for incidents like unexpected braking or traffic violations.
Tighter federal rules could mandate more rigorous testing, data sharing, or design changes, potentially slowing their timelines and increasing expenses in a market projected to reach tens of billions by 2025.
Contrast with Industry Expectations: The AV sector anticipated deregulation under Trump, including a federal framework to preempt patchwork state laws.
Morrison's proactive stance might instead emphasize safety over speed, viewing regulation as a "blueprint for building trust" rather than a barrier.
For Tesla, which has sometimes defied norms, this could amplify risks; Waymo and GM's Cruise are seen as more compliant models.
Public Trust and Market Implications: NHTSA's mission includes reducing crashes through standards, and Morrison's approach aims to address public skepticism toward AVs
However, for Tesla (integrating AI like Grok amid controversies) and Waymo, this could mean more recalls or probes, impacting stock performance and investor confidence
Broader Context and Reactions
Morrison's nomination aligns with NHTSA's ongoing efforts, including updated AV policies and defect investigations into multiple firms.
On X, users shared the Yahoo Finance article, with posts framing it as a potential "threat" to Tesla and Waymo, sparking discussions on regulatory shifts under Trump.
Some expressed concerns about innovation stifling, while others welcomed oversight for safety.
If confirmed, Morrison could steer NHTSA toward a regulatory framework that balances innovation with accountability. Still, companies like Tesla and Waymo may need to adapt to avoid setbacks in the competitive AV race. Investors should monitor the Senate confirmation process for further developments.