Tesla says the proposed rules are overly strict and would effectively block its autonomous technology from operating in the state.
- Supporters of the legislation, however, say the measures would set strong safety standards.
- Launched in Austin, Texas, in June 2025, Tesla’s robotaxi service is currently available in limited areas of Austin, Dallas and Houston.
- Tesla currently trails Alphabet Inc’s Waymo in both the number of robotaxis it operates and the cities out of which it operates.
EV giant Tesla Inc (TSLA) is asking New Jersey residents to contact state lawmakers and oppose two bills that would create the state’s first pilot program for fully driverless vehicles, terming them an “arbitrary roadblock.
The companion bills, S-1677 and A-3968, would allow approved companies, universities, and fleet operators to test and operate self-driving cars on public roads for three years. Companies would need state approval, carry at least $5 million in insurance, prove they have already driven the vehicles safely for long distances, and meet detailed safety standards. Robotaxi services would face extra limits on routes and be banned from school zones and busy pedestrian areas.
Why Is Tesla Opposed To The Bills?
Tesla says the proposed rules are overly strict and would effectively block its autonomous technology from operating in the state. The company says the bills are anti-competitive and would prevent meaningful commercial use of driverless cars, putting New Jersey behind other states with more flexible policies.
“As written, the legislation imposes restrictions so severely that Tesla’s autonomous vehicle technology couldn’t legally operate in New Jersey. Rather than prioritizing real safety outcomes and performance, the bill specifically bans Tesla from the New Jersey market,” the company wrote. It also urged that the make be made “technology-neutral” and the program be made open to “all qualified companies.”
Supporters of the legislation, however, say the measures would set strong safety standards while still allowing testing to begin. The bills have cleared Senate and Assembly committees and are now awaiting action in appropriations panels.
Launched in Austin, Texas, in June 2025, Tesla’s robotaxi service is currently available in limited areas of Austin, Dallas, and Houston. In these Texas cities, many rides operate without a safety driver. The company plans to expand to more cities in the future. Tesla currently trails Alphabet Inc’s Waymo in both the number of robotaxis it operates and the cities out of which it operates.
How Did TSLA Retail Traders React?
On Stocktwits, retail sentiment around TSLA stock fell from ‘bullish’ to ‘neutral’ over the past 24 hours, while message volume remained at ‘normal’ levels.
Stocktwits users are currently actively contemplating rumors of a potential merger between Tesla and Elon Musk’s rocket manufacturing company, SpaceX.
Another called to buy the dip in the stock.
TSLA stock has fallen 7% this year.
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