Tesla is in preliminary discussions with Austin, Texas, officials regarding its autonomous vehicle technology, Bloomberg News reported Thursday. The talks include safety protocols and expectations for driverless vehicles, according to emails obtained through public records requests.
A Tesla representative has been engaging with Austin’s autonomous vehicle task force since May, the report noted. The discussions coincide with Tesla’s unveiling of the Cybercab, a driverless, pedal-less prototype showcased during the company’s Hollywood robotaxi event in October. CEO Elon Musk has announced plans to introduce an “unsupervised version” of Tesla’s Full Self-Driving (FSD) technology in California and Texas by next year.
Tesla’s FSD technology, though marketed as a comprehensive driver-assistance package, requires constant human oversight and has faced scrutiny for its capabilities. Despite these challenges, the company’s shares climbed 3% in premarket trading on Thursday, buoyed by optimism surrounding potential regulatory advantages.
Since the re-election of Donald Trump as U.S. president, Tesla investors have speculated that Musk’s close ties to the administration could help navigate regulatory barriers for autonomous vehicle deployment.
Industry observers suggest Tesla may encounter fewer hurdles in Texas, where state law limits city-level regulation of driverless vehicles. This regulatory landscape contrasts with stricter oversight in states like California, offering Tesla a strategic advantage for advancing its technology.
In October, Musk disclosed during an earnings call that Tesla has been pilot-testing a ride-hailing service in the Bay Area using company vehicles equipped with safety drivers. The service operates through an internal app, signaling a phased approach to broader autonomous ride-hailing ambitions.
