Robotaxi operators and automakers will face closer scrutiny in Washington and Texas starting in January. A federal bill that would override state self-driving rules has lost its path through Congress, and Texas, the center of Tesla‘s robotaxi push, will be led by a governor who once asked the company to delay its Austin launch.
EV buyer credits, fuel economy penalties and auto tariffs are back in the debate under the new Democratic majorities in Congress. But any change in law still needs President Donald Trump’s signature, or 67 senators and 290 House members to override his veto.
The SELF DRIVE Act, introduced in February by Republican Representative Robert Latta of Ohio, would set federal safety standards for autonomous vehicles, override state restrictions and allow cars without steering wheels or pedals.
The bill cleared a House Energy and Commerce subcommittee 12-11 on February 10, with all 11 Democrats voting against it. It has not moved since, according to Congress.gov, and it will expire when the current Congress ends in January.
Democrats on the panel, led by Representative Jan Schakowsky of Illinois, have argued it would strip states of safety authority too early. Under the new majority, Democrats will control the committee that would have to revive it.
A separate framework for autonomous trucks sits in the House’s five-year surface transportation bill, the BUILD America 250 Act. It cleared the Transportation and Infrastructure Committee 62-2 in May but has not reached the House floor.
Senate Scrutiny
Senate Democrats who led the questioning of Tesla and Waymo at a Commerce Committee hearing in February will gain committee power from January.
“Are we going to just continue to let people die in the United States?” asked Senator Maria Cantwell of Washington, the committee’s top Democrat, at the hearing.
“Tesla is putting American lives at risk,” said Senator Ed Markey of Massachusetts, who also called Waymo’s use of overseas remote operators “dangerous and unacceptable.”
Markey and Senator Richard Blumenthal of Connecticut have repeatedly pressed NHTSA to scrutinize Tesla’s Full Self-Driving data. With subpoena power, Democratic committee chairs could compel testimony and documents from regulators and companies.
Texas, the Robotaxi Hub
The biggest shift for robotaxis is in Texas. Tesla had 1,051 robotaxis registered with the Texas Department of Motor Vehicles as of late October, and it launched service in Fort Worth this month. Waymo and Zoox also operate in the state.
Incoming Governor Gina Hinojosa, then a state representative from Austin, was among the Democratic lawmakers who wrote to Tesla in June 2025.
“We are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September 1, 2025,” the letter said. That law requires driverless operators to get state authorization and file plans for how first responders should handle incidents.
From January, Hinojosa will control state appointments and the veto. Democrats will also lead the Texas House, while Republicans keep the state Senate.
Hinojosa has also pledged to “issue a moratorium — a ban — on all data center approvals,” which weighed on Tesla and SpaceX shares on Wednesday. She has questioned a $1.66 billion tax break tied to Terafab, the $16.8 billion chip plant Tesla and SpaceX are building in Grimes County.
Grant also pointed to stricter rules becoming possible in Arizona, Colorado and Pennsylvania, where Waymo operates or plans to expand.
Tariffs Face More Scrutiny
Committee gavels will let Democrats hold hearings and compel testimony on the tariffs that hit imported vehicles, parts, steel and aluminum.
“We know they are tired of paying for Trump’s needless war with Iran and price-hiking tariffs,” said Representative Richard Neal of Massachusetts, who is expected to return as Chairman of the House Ways and Means Committee.
Michigan Senator-elect Abdul El-Sayed, backed by the United Auto Workers, has criticized the tariffs on Canada. “There’s a way that tariffs could be used to actually protect jobs. This ain’t it,” he said during the campaign.
Repeal is another matter. Democrats would need to “get enough Republicans to make it veto-proof,” said William Reinsch, Senior Adviser at the Center for Strategic and International Studies. “That would be very, very difficult.”
Scott Lincicome, Vice President of General Economics at the Cato Institute, sees room only “to cobble together a veto-proof majority on some narrow things — targeting Canada, for example,” which would matter for the cross-border supply chains of Ford, General Motors and Stellantis.
Kelly Ann Shaw, a White House trade adviser in Trump’s first term, expects no retreat. “I don’t think he’s going to let his foot off the gas,” she said.
EV Credits
Democrats may try to restore the $7,500 federal tax credit for EV buyers, which ended under Trump’s 2025 tax law.
More than 160 House Democrats back the Energy Bills Relief Act, which would revive the credits, but House Minority Leader Hakeem Jeffries is not a cosponsor, and the credit is not on his 100-day list, which includes ending Trump’s tariffs.
“There would still be the challenge of a veto and then overcoming that veto, which is a very, very high hurdle,” said Jeff Meyer, Director of Mobility and Energy at S&P Global’s CERA.
The 2025 tax law also eliminated civil penalties for missing fuel economy targets, and the Trump administration’s new rule sets a model year 2031 target of 34.9 miles per gallon, down from 50.4 under the Biden-era standard.
Restoring tougher standards or the penalties would again make regulatory credits valuable to EV-only makers such as Tesla, Rivian and Lucid.
A Check on Regulators
From January, a Democratic Senate can block or slow Trump’s nominees to the EPA and the National Highway Traffic Safety Administration, the agencies that write vehicle emissions and safety rules.
NHTSA is already led by Administrator Jonathan Morrison, confirmed in September 2025. At the EPA, the Senate Environment and Public Works Committee will hold a hearing on November 10 on Justin Schwab’s nomination to lead the Office of Air and Radiation, which oversees vehicle emissions rules, so the current Republican-led Senate can still confirm him before January.
Control of the appropriations committees also gives Democrats more leverage over budget requests and over how federal funds for EV charging and factories are spent.
Chinese Vehicles
The one area where a federal law looks within reach is a ban on Chinese vehicles.
The Connected Vehicle Security Act, which would codify the Biden-era ban on Chinese connected-car software and hardware, cleared the Senate Commerce Committee unanimously on July 22. Senators Elissa Slotkin, a Michigan Democrat, and Bernie Moreno, an Ohio Republican, have led the push.
John Bozzella, President of the Alliance for Automotive Innovation, urged lawmakers on November 2 to “enact a Chinese vehicle, software, and hardware ban before adjourning this year.”
UAW President Shawn Fain warned that “if they don’t deliver, we’ll be the first ones to call them out on it.” The union’s contracts with Detroit’s automakers expire in 2028.
Automaker Shares on Thursday
Automaker shares moved sharply on Thursday as a sell-off in AI-linked stocks dragged down Wall Street. The S&P 500 fell 4.4%, its worst day since April 2025, while the Nasdaq Composite dropped 5.5%.
Tesla shares fell 10.8% to $343.69, after a 3.3% drop on Wednesday, leaving the stock down 13.8% since Tuesday. Bloomberg described the move as a “deepening post-election slump.”
Lucid fell 11.6% to $2.98 and Rivian dropped 5.5% to $13.29, erasing their Wednesday gains.
GM lost 3.4% to $89.33 and Ford slipped 1.1% to $12.53, but both stayed above their Tuesday closes. Stellantis fell 4.5% to $4.44.
Toyota‘s U.S.-listed shares jumped 9.4% to $218.11 after the company raised its full-year net profit forecast to 3.57 trillion yen ($22.6 billion) on hybrid demand. Honda rose 3%.
