The U.S. may place a ban on Chinese software in self-driving and connected vehicles, with the Biden administration expected to propose such rules in the coming weeks.
According to a report from Reuters citing sources briefed on the matter, the U.S. Commerce Department is looking to propose banning Chinese software in autonomous and connected vehicles this month. The rule would ban any Chinese software in U.S. vehicles with Level 3 or higher autonomous capabilities, effectively banning self-driving tests for companies from China.
Level 3 autonomous driving would allow drivers to take their focus off the road and even perform other activities unless otherwise prompted to take over driving by the vehicle. The sources also say the rule would require automakers and suppliers to confirm to regulators that their connected vehicle and Level 3 software platforms weren’t developed in a “foreign entity of concern,” such as China.
On Sunday, a spokesperson from the Commerce Department said the agency was “concerned about the national security risks associated with connected technologies in connected vehicles.”
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The rule is expected to come from the department’s Bureau of Industry and Security, and the department says that the requirement “will focus on specific systems of concern within the vehicle,” adding that “industry will also have a chance to review that proposed rule and submit comments.”
The Commerce Department initially said last month that it was considering imposing certain limits on some Chinese software, as well as those from other countries considered adversaries.
“Only division of labor and cooperation can bring mutual benefits, and only fair competition can bring technological progress,” said a spokesperson from the Chinese embassy in Washington D.C. in response to the expected proposal “China urges the U.S. to earnestly abide by market principles and international trade rules, and create a level playing field for companies from all countries. China will firmly defend its lawful rights and interests.”
Last Wednesday, the White House and State Department held a meeting with officials from around the world to “jointly address the national security risks associated with connected vehicles,” according to the department. The meeting also included details about the administration’s plans to propose the rule.
The conference included officials from the U.S., Canada, Australia, the European Union (EU), the United Kingdom (UK), Germany, Spain, India, South Korea, and Japan, who “exchanged views on the data and cybersecurity risks associated with connected vehicles and certain components.”
The topic of national security risks surrounding connected vehicles has been around for quite some time, with a group of legislators last November bringing forward concerns that Chinese companies could collect and misuse sensitive data in autonomous vehicle tests.
“The national security risks are quite significant,” said Gina Raimondo, Commerce Secretary, in a statement in May. “We decided to take action because this is really serious stuff.”
The news comes after the U.S. increased tariffs on Chinese electric vehicles (EVs) in May, in order to stave off cheap competitors to U.S.-built products. The EU lodged also launched tariffs on Chinese EVs last month, and Canada is considering similar legislation.
It also comes as multiple companies have gained approval to test autonomous driving tech in China, including domestic makers Nio, BYD, Changan Auto, GAC, SAIC, BAIC BluePark, China FAW Group, SAIC Hongyan, and Yutong Bus. Over the weekend, Mercedes-Benz became the first foreign company to gain approval for Level 4 autonomous driving tests in China, and Tesla is expected to gain full approval for its Full Self-Driving (FSD) Supervised later this year.
Tesla China to test 10 FSD vehicles ahead of expected public rollout: report
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Elon Musk
Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes
“I really want to put a Ryan in charge of Ryan Air. It is your destiny,” Musk said.
Tesla CEO Elon Musk trolled budget airline Ryanair on his social media platform X this week following the company’s refusal to adopt Starlink internet on its planes.
Earlier this week, it was reported that Ryanair did not plan to install Starlink internet services on its planes due to its budgetary nature and short flight spans, which are commonly only an hour or so in total duration.
Initially, Musk said installing Starlink on the company’s planes would not impact cost or aerodynamics, but Ryanair responded on its X account, which is comical in nature, by stating that a propaganda it would not fall for was “Wi-Fi on planes.”
Musk responded by asking, “How much would it cost to buy you?” Then followed up with the idea of buying the company and replacing the CEO with someone named Ryan:
I really want to put a Ryan in charge of Ryan Air. It is your destiny.
— Elon Musk (@elonmusk) January 19, 2026
Polymarket now states that there is an 8 percent chance that Musk will purchase Ryanair, which would cost Musk roughly $36 billion, based on recent financial data of the public company.
Although the banter has certainly crossed a line, it does not seem as if there is any true reason to believe Musk would purchase the airline. More than anything, it seems like an exercise of who will go further.
Starlink passes 9 million active customers just weeks after hitting 8 million
However, it is worth noting that if something is important enough, Musk will get involved. He bought Twitter a few years ago and then turned it into X, but that issue was much larger than simple banter with a company that does not want to utilize one of the CEO’s products.
The insufferable, special needs chimp currently running Ryan Air is an accountant. Has no idea how airplanes even fly.
— Elon Musk (@elonmusk) January 20, 2026
In a poll posted yesterday by Musk, asking whether he should buy Ryanair and “restore Ryan as their rightful ruler.” 76.5 percent of respondents said he should, but others believe that the whole idea is just playful dialogue for now.
But it is not ideal to count Musk out, especially if things continue to move in the direction they have been.
News
Tesla Robotaxi’s biggest rival sends latest statement with big expansion
The new expanded geofence now covers a broader region of Austin and its metropolitan areas, extended south to Manchaca and north beyond US-183.
Tesla Robotaxi’s biggest rival sent its latest statement earlier this month by making a big expansion to its geofence, pushing the limits up by over 50 percent and nearing Tesla’s size.
Waymo announced earlier this month that it was expanding its geofence in Austin by slightly over 50 percent, now servicing an area of 140 square miles, over the previous 90 square miles that it has been operating in since July 2025.
Tesla CEO Elon Musk shades Waymo: ‘Never really had a chance’
The new expanded geofence now covers a broader region of Austin and its metropolitan areas, extended south to Manchaca and north beyond US-183.
These rides are fully driverless, which sets them apart from Tesla slightly. Tesla operates its Robotaxi program in Austin with a Safety Monitor in the passenger’s seat on local roads and in the driver’s seat for highway routes.
It has also tested fully driverless Robotaxi services internally in recent weeks, hoping to remove Safety Monitors in the near future, after hoping to do so by the end of 2025.
Tesla Robotaxi service area vs. Waymo’s new expansion in Austin, TX. pic.twitter.com/7cnaeiduKY
— Nic Cruz Patane (@niccruzpatane) January 13, 2026
Although Waymo’s geofence has expanded considerably, it still falls short of Tesla’s by roughly 31 square miles, as the company’s expansion back in late 2025 put it up to roughly 171 square miles.
There are several differences between the two operations apart from the size of the geofence and the fact that Waymo is able to operate autonomously.
Waymo emphasizes mature, fully autonomous operations in a denser but smaller area, while Tesla focuses on more extensive coverage and fleet scaling potential, especially with the potential release of Cybercab and a recently reached milestone of 200 Robotaxis in its fleet across Austin and the Bay Area.
However, the two companies are striving to achieve the same goal, which is expanding the availability of driverless ride-sharing options across the United States, starting with large cities like Austin and the San Francisco Bay Area. Waymo also operates in other cities, like Las Vegas, Los Angeles, Orlando, Phoenix, and Atlanta, among others.
Tesla is working to expand to more cities as well, and is hoping to launch in Miami, Houston, Phoenix, Las Vegas, and Dallas.
Elon Musk
Tesla automotive will be forgotten, but not in a bad way: investor
It’s no secret that Tesla’s automotive division has been its shining star for some time. For years, analysts and investors have focused on the next big project or vehicle release, quarterly delivery frames, and progress in self-driving cars. These have been the big categories of focus, but that will all change soon.
Entrepreneur and Angel investor Jason Calacanis believes that Tesla will one day be only a shade of how it is recognized now, as its automotive side will essentially be forgotten, but not in a bad way.
It’s no secret that Tesla’s automotive division has been its shining star for some time. For years, analysts and investors have focused on the next big project or vehicle release, quarterly delivery frames, and progress in self-driving cars. These have been the big categories of focus, but that will all change soon.
I subscribed to Tesla Full Self-Driving after four free months: here’s why
Eventually, and even now, the focus has been on real-world AI and Robotics, both through the Full Self-Driving and autonomy projects that Tesla has been working on, as well as the Optimus program, which is what Calacanis believes will be the big disruptor of the company’s automotive division.
On the All-In podcast, Calcanis revealed he had visited Tesla’s Optimus lab earlier this month, where he was able to review the Optimus Gen 3 prototype and watch teams of engineers chip away at developing what CEO Elon Musk has said will be the big product that will drive the company even further into the next few decades.
Calacanis said:
“Nobody will remember that Tesla ever made a car. They will only remember the Optimus.”
He added that Musk “is going to make a billion of those.”
Musk has stated this point himself, too. He at one point said that he predicted that “Optimus will be the biggest product of all-time by far. Nothing will even be close. I think it’ll be 10 times bigger than the next biggest product ever made.”
He has also indicated that he believes 80 percent of Tesla’s value will be Optimus.
Optimus aims to totally revolutionize the way people live, and Musk has said that working will be optional due to its presence. Tesla’s hopes for Optimus truly show a crystal clear image of the future and what could be possible with humanoid robots and AI.
Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes
Tesla Robotaxi’s biggest rival sends latest statement with big expansion
