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Tesla (TSLA) has urged the U.S. National Highway Traffic Safety Administration (NHTSA) to modernize vehicle lighting rules to accommodate advanced headlights that use cameras and software to improve visibility.
In a letter made public on Tuesday, Tesla said that existing vehicle lighting regulations were designed for traditional headlights, rather than modern matrix light-emitting diode (LED) systems.
Unlike conventional headlights that switch between high and low beams, Tesla’s matrix LED headlights contain individually controlled segments that can adjust the shape and brightness of the light beam in real time.
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“Tesla designs and integrates exterior lighting as part of a software-defined vehicle. Matrix light-emitting diode (LED) headlamps with individually addressable segments are controlled in real time by vehicle software,” the letter read.
TSLA shares were trading 0.7% lower at the time of writing.
Tesla’s system uses cameras around the vehicle to detect oncoming traffic, pedestrians, and road conditions, automatically adjusting light beams to improve visibility.
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“The negotiated rulemaking to modernize FMVSS 108 must account for camera-based, multi-object detection along with the various topics of modernization,” Tesla said. The Federal Motor Vehicle Safety Standard 108, or FMVSS 108, regulates automotive lighting, signaling, and reflective devices.
In October, NHTSA proposed creating an advisory committee to recommend changes to FMVSS 108. The proposed committee would feature up to 18 representatives from automakers, lighting manufacturers, safety organizations, and other industry groups to develop recommendations for updating the rules.
However, Tesla argued that the proposed structure gives automakers insufficient representation, with only two seats for vehicle manufacturers.
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“Given the complexity of lighting requirements and diversity of vehicle design, the interests of individual vehicle manufacturers will not be adequately represented by the current proposal of two representatives from national motor vehicle manufacturers. A broader bench of individual motor vehicle manufacturer representatives on the committee is warranted,” the letter read.
Retail sentiment surrounding TSLA on Stocktwits remained ‘extremely bearish’ over the past 24 hours.
TSLA shares have declined more than 14% so far in 2026, making it the worst-performing stock in the Magnificent 7 cohort.
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