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Elon Musk's Cost-Cutting Sparks Job Cuts at Vehicle Safety Agency

2/22/2025
Elon Musk's team slashes jobs at the safety agency overseeing Tesla, sparking controversy over investigations into deadly crashes and self-driving technology.
Elon Musk's Cost-Cutting Sparks Job Cuts at Vehicle Safety Agency
Discover how Elon Musk's cost-cutting measures lead to job cuts at the vehicle safety agency, impacting investigations into Tesla and self-driving technology.

Elon Musk's Team Initiates Job Cuts at Vehicle Safety Agency Overseeing Tesla

NEW YORK (AP) — In a move stirring significant attention, Elon Musk’s cost-cutting team has initiated job eliminations at the National Highway Traffic Safety Administration (NHTSA), the federal agency responsible for overseeing Tesla and conducting investigations into fatal accidents involving its vehicles.

NHTSA Confirms Modest Job Reductions

According to an official statement from the NHTSA, the agency has experienced a "modest" reduction in positions. This strategic downsizing comes amid criticisms from Musk, who has accused the agency of impeding advancements in self-driving technology through their ongoing investigations and mandated recalls.

Impact on Tesla Investigations

When asked whether these job cuts might affect ongoing probes into Tesla, the NHTSA reaffirmed its commitment to enforce regulations across all motor vehicle and equipment manufacturers. Despite the reduction in staff, the agency emphasized its ability to maintain its core mission.

Background on the Job Cuts

The recent job cuts at the NHTSA were enacted by Musk’s advisory group dedicated to shrinking federal government operations, known as the Department of Government Efficiency. This development was initially reported by The Washington Post.

Reporting Requirements for Self-Driving Vehicles

In addition to ongoing investigations into Tesla’s partially automated vehicles, the NHTSA has imposed requirements for Tesla and other automakers utilizing self-driving technology to report crash data. While this mandate has faced criticism from Tesla, watchdog organizations express concern over the potential elimination of such requirements.

Details on Staff Reductions

The staff reductions at the NHTSA have occurred through a combination of firings, buyouts, and layoffs. Despite these changes, the agency noted that the Biden administration had previously expanded its personnel, implying that the current workforce is adequate to fulfill its mission effectively.

The NHTSA statement highlighted, “Even with these modest efficiencies, our organization remains significantly larger today than it was four years ago. We have retained positions critical to our mission of saving lives, preventing injuries, and reducing economic costs due to road traffic crashes.”

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