NHTSA has previously received and published more than 10,000 public complaints and is currently launching eight investigations into Tesla.
After the first round of layoffs initiated by the Department of Government Effectiveness, morale at the agency plummeted, according to current and former NHTSA staff. NHTSA has ordered Tesla to conduct dozens of recalls and delayed the rollout of the company's self-driving and driver-assistance software.
“It’s a clear conflict of interest to allow someone with a business interest in an agency’s regulated entities to influence the agency’s appointments and policies,” said a former senior NHTSA official.
One fired NHTSA staffer said that the actions of the Department of Government Effectiveness could hinder Tesla's development and that the firing "will definitely weaken NHTSA's ability to understand autonomous driving technology." Another former NHTSA employee said: "The Office of Vehicle Automation Safety should be at the forefront of planning the direction of future regulations. It would be ridiculous if the Department of Government Efficiency slowed down Tesla's development."
Musk has promised customers and investors that Tesla will launch a driverless ride-hailing service in Austin, Texas, by June and start producing a batch of self-driving "cybercabs" next year. To do this, Tesla needs to obtain a waiver from NHTSA to operate non-standard self-driving cars on U.S. roads.
A Tesla manager said: “It’s crazy to have the Department of Government Efficiency lay off employees in the self-driving department – we should be lobbying for more staff at NHTSA. They need to develop a national framework for self-driving cars, otherwise Tesla has no hope of scaling FSD or self-driving taxis.”