Another Musk Moment? Self-Driving Cars could Save the American EV Business

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Another wrinkle looks like it might be around the corner in the EV business: It’s that Tesla, under the auspices of the upcoming Trump administration, could get approval for its self-driving vehicles, something legacy automakers are unlikely have any time soon.

And the effect of this possible approval could have a meaningful effect on the U.S. EV business, where sales growth has practically come to a halt.

The major car companies closest to self driving features are probably Tesla and some of the largest Chinese firms, such as BYD. Ford claims it has made progress, but few think its offerings can match Tesla’s “self driving mode.” If Tesla can get approval for its autonomous vehicles to move on American roads, EV sales would likely jump, in part because it is unlikely that gas powered cars can match the feature quickly.

The Musk effect
One hurdle to self driving cars in the U.S. is that approvals are by local or state authorities, but the new administration — which is highly influenced by Tesla CEO Elon Musk — might change this and offer blanket national permits. Whether that is legally possible remains to be seen.

Meanwhile, although it is unlikely Chinese cars will be imported into the U.S. due to 100% tariffs, word from China is that their self-driving features are advanced, and it may mean they may make inroads across EU nations where trade barriers not at present as high as in the U.S.