Co-founder and President of Gerber Kawasaki Wealth and Investment Management Ross Gerber noted the state-by-state nature of Tesla's ( NASDAQ:TSLA ) difficulties with self-driving laws. Gerber said, stressing that state governments mostly regulate autonomous car regulations, "The federal government does not really have authority over state roads." Gerber thinks federal agencies, that oppose autonomous technology, have hindered field advancement.

This comes in line with the "AV STEP" framework the National Highway Traffic Safety Administration (NHTSA) just proposed to simplify regulations for autonomous cars. The suggested architecture lets driverless automobiles without conventional controlssuch as pedals or steering wheelsbut mandates manufacturers give thorough data to increase public confidence and openness.

Critics have questioned the proposal's timing and practicality, particularly given federal openness policies from the Biden administration might undergo revisions under incoming leadership. Safety proponents warn of dangers related to varying regulation criteria for cutting-edge automotive systems. Though Tesla and others in the sector still have great challenges negotiating both federal and state-level complexity, the plan marks a major turning point in the development of a regulatory framework for autonomous vehicles.

This article first appeared on GuruFocus .