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Tesla Calls New Jersey Self-Driving Bills “Arbitrary Roadblock”

  • Tesla is mobilizing New Jersey residents to oppose two state bills it calls an “arbitrary roadblock” to its robotaxi operations.
  • The proposed legislation requires strict testing, $5 million insurance minimums, and would ban robotaxis from school zones and busy pedestrian areas.
  • Supporters argue the bills set strong safety standards, while Tesla claims they are overly restrictive and anti-competitive.
  • Launched in June 2025, Tesla’s driverless service trails Alphabet’s Waymo in both fleet size and geographic reach.
  • Retail sentiment on TSLA stock turned neutral amid the regulatory clash and merger rumors with SpaceX.

Tesla Inc is urging New Jersey residents to lobby state lawmakers against pending robotaxi legislation, framing companion bills S-1677 and A-3968 as an “arbitrary roadblock.” The proposed three-year pilot program would allow approved entities to test fully driverless vehicles under stringent conditions. However, Tesla asserts the rules are so strict they would effectively ban its autonomous technology from the state.

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The company argues the measures are not technology-neutral and would block meaningful commercial use. Consequently, Tesla claims this would put New Jersey behind other states with more flexible policies. Supporters of the legislation, however, say the measures would set strong safety standards while still allowing testing to begin. The bills have cleared initial committees and now await 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. Many rides in these Texas cities operate without a safety driver. Meanwhile, Tesla currently trails Alphabet Inc’s Waymo in both the number of robotaxis it operates and its operational cities.

On Stocktwits, retail sentiment around TSLA stock fell from ‘bullish’ to ‘neutral’ over the past 24 hours. Users are actively contemplating rumors of a potential merger between Tesla and Elon Musk’s SpaceX, according to reports. Another called to buy the dip as TSLA stock has fallen 7% this year.

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