Tesla $TSLA ( ▼ 3.78% ) shares moved lower after a Senate hearing put its self-driving approach under a harsh spotlight. Lawmakers pressed the company’s head of vehicle engineering on two controversial areas: Tesla’s camera-only system and how freely drivers can activate Full Self-Driving features.
Compared with testimony from Waymo, Tesla found itself more on the defensive.
Cameras vs. Lidar Takes Center Stage
One of the main debates was over sensor redundancy. Waymo, owned by Alphabet, uses lidar, radar, and cameras together. Its executive emphasized that multiple sensor types act as backups if one system fails, boosting reliability.
Tesla, by contrast, defended its vision-only approach, arguing that roads are designed for human drivers who rely on sight and that multiple cameras provide sufficient redundancy. Senators questioned whether removing radar and avoiding lidar reduces safety margins in edge cases like poor weather or unusual road conditions.
How and Where FSD Can Be Used
Another flashpoint was how Tesla’s driver-assistance systems are deployed. Waymo restricts its fully autonomous vehicles to tightly defined, pre-mapped areas and operating conditions.
Tesla said its fully driverless testing is geofenced in limited areas, but its consumer-facing Full Self-Driving and Autopilot systems can be used on most public roads with driver supervision. Some senators argued that this broad availability, combined with the “Full Self-Driving” name, could lead drivers to overestimate the system’s capabilities.
Policy Pressure Is Building
Lawmakers also raised concerns about whether current safeguards are strong enough to ensure drivers stay attentive, and whether clearer federal standards are needed for how advanced driver-assistance systems are marketed and deployed.
For Tesla $TSLA, the hearing underscores a growing regulatory and political focus on autonomous tech. As the company pushes to scale robotaxi ambitions, scrutiny over safety design choices and system limits is likely to intensify right alongside the technology itself.