On Valentine’s Day, as most Americans were swapping cards and chocolates, an email arrived at the National Highway Traffic Safety Administration. It wasn’t sweet.
Roughly 30 staff members were told they were out of a job. Many of them worked in the agency’s newly minted Office of Vehicle Automation Safety — the group directly responsible for scrutinizing the promises and perils of self-driving cars.
Their dismissal, first uncovered by the Financial Times, was part of a sweeping purge across federal agencies orchestrated by the so-called Department of Government Efficiency, or DOGE — a project spearheaded by Elon Musk to shrink the federal workforce. At least 270,000 government workers have been affected so far. But in this corner of Washington, the layoffs struck a nerve.
Because this is the office that regulates Tesla.
A Weakening Watchdog
The NHTSA has long been a thorn in Tesla’s side. It has launched eight active investigations into the automaker, many focused on its Autopilot and Full Self-Driving (FSD) systems. More than 10,000 public complaints have poured in, alleging sudden braking, erratic acceleration, and disengaging software.
So, when Musk’s initiative led to cuts that disproportionately affected the very office tasked with examining those technologies, alarm bells rang.
“There is a clear conflict of interest in allowing someone with a business interest influence over appointments and policy at the agency regulating them,” said one former senior NHTSA figure (not among those fired by DOGE).
Another official added, “Morale is low after some huge talent losses.”
Even inside Tesla, some were uneasy. “Letting DOGE fire those in the autonomous division is sheer madness — we should be lobbying to add people to NHTSA,” one Tesla manager told the Financial Times. Without a national framework for autonomous vehicles, they warned, Tesla’s ambitious rollout of driverless taxis could actually stall.
Musk has said Tesla will launch a robotaxi service in Austin by June and begin producing a fleet of so-called “cybercabs” next year. The vehicles will have no pedals, no steering wheel — and for now, no green light from regulators. Tesla needs an exemption from the NHTSA to get these futuristic cars on U.S. roads.
But who will assess the risks, now that many of the experts are gone?
A Legal Nightmare
Lawmakers are now seeking clarity on the ethical implications of Musk’s involvement. On April 10, 2025, U.S. Representatives Gerald Connolly and Emily Randall requested detailed information from the Department of Transportation’s top ethics official regarding potential conflicts of interest related to Musk. Their concerns center on Musk’s capacity to influence federal contract decisions and access confidential information that may benefit his companies.
The controversy extends beyond the Department of Transportation. Former Federal Trade Commission (FTC) Commissioners Rebecca Slaughter and Alvaro Bedoya, who were dismissed by President Trump, have raised alarms about DOGE staffers’ access to sensitive corporate and personal data. They warn that such access could lead to the misuse of confidential information, potentially affecting market dynamics and competitive fairness.
In response to these developments, Senator Jeanne Shaheen introduced a bill aimed at preventing conflicts of interest by banning government contracts and grants to companies owned by special government employees. The legislature seems to be directly pointed at Musk. It aims to ensure that individuals with significant government roles do not simultaneously benefit from federal contracts.
Fast Track to Danger?
Musk is no stranger to regulatory clashes. He’s taken aim at the Federal Aviation Administration, the Federal Communications Commission, and now, it seems, the NHTSA. Critics worry that this time, the stakes are much higher.
“This is an office that should be on the cutting edge of how to handle AVs [autonomous vehicles],” said a former NHTSA employee. “It would be ironic if DOGE slowed down Tesla.”
Others fear a more troubling possibility — that the gutting of the agency will speed up approvals instead. “The government could ‘speed up the [AV STEP] application process and weaken it in some way so the safety case is less onerous to meet,’” said one former official, referring to the agency’s proposed oversight framework for driverless vehicles.
The future of crash reporting is also at risk. Under a 2021 rule, companies must report serious accidents involving automated systems within 24 hours. That rule proved vital in December 2023, when the NHTSA forced Tesla to recall 2 million vehicles and install a software update to keep drivers alert while using Autopilot.
Without that rule, many fear, such recalls might never happen again.
Meanwhile, Tesla insists it is being unfairly penalized. A person familiar with Musk’s thinking said the company’s superior sensors and cameras lead to more detailed reports — and more scrutiny.
“Reporters see that we are reporting more incidents — many of which have nothing to do with autopilot — and have told the wrong story about our safety record,” the person said.
The Tech Isn’t Ready
The complaints keep coming. The analysis by the Financial Times, which used artificial intelligence to sort more than 10,000 grievances, found that driver-assist features like Autopilot and FSD still dominate the list of concerns.
One driver of a Model 3 reported a chilling incident in October 2024. The car, running on FSD, abruptly stopped in traffic. A collision seemed imminent until the driver wrested back control and sped forward.
Another complaint came in February, from a Cybertruck owner who said their vehicle suddenly accelerated when FSD disengaged — nearly causing a head-on crash. Tesla service, they said, never inspected or repaired the car.
Despite software updates, issues persist. In fact, complaints about “phantom braking” alone triggered one of the eight current investigations into Tesla.
“There have been preventable deaths,” said one former top NHTSA official. “So it’s an immediate concern for us.”
If the United States is to embrace autonomous vehicles, someone must ask hard questions. Someone must inspect, investigate, and — when necessary — say no.
The agency’s future now rests in the hands of Jonathan Morrison, a former Apple executive nominated by Trump to lead the NHTSA. He must walk a fine line — maintaining the agency’s credibility while navigating the optics of Musk’s influence.
