Hong Kong Transportation Authorities Deem Tesla’s Autopilot Software Illegal

In October, Tesla rolled out an autopilot software update that provided semi-autonomous functionality to 60,000 Model S vehicles. However, drivers in Hong Kong that are eager to test that feature out will have to wait, as the city’s transportation authorities have declared it is illegal. This determination is not based on safety concerns, but is instead due to Tesla failing to go through the proper regulatory process to get the semi-autonomous functionality approved.

One of the many obstacles that still needs to be overcome before self-driving cars can become commonplace on our roads is the creation of governmental regulations that will allow the technology to be used commercially. The complexities of these laws include not only safety, but also insurance and determination of who is liable in the case of accidents. Hong Kong’s decision to shut down Tesla’s autopilot functionality is indicative of the many challenges to come.

The South China Morning Post reported Hong Kong’s Transport Department issued a warning to Tesla October 30, informing the company that it must first apply to receive regulatory approval before rolling out its auto-steering and auto-lane changing functionality to drivers of its Model S vehicles. Authorities said that drivers who activate autopilot may be subject to fines, although autonomous parking could remain enabled.

Tesla CEO, Elon Musk, wrote in October that the company had received approval for its autopilot software update everywhere but Japan. A Tesla representative told the South China Morning Post this week that the company didn’t technically apply for regulatory approval of autopilot in Hong Kong, but that the city’s traffic laws are identical to those found in Europe, thereby implying that the technology would be legal.

However, the Hong Kong authorities clearly don’t agree, and Tesla has now disabled the autopilot feature.

“We are working with the Transport Department to obtain approval as quickly as possible,” Tesla wrote in a statement. “While the outcome of regulatory reviews cannot be guaranteed, we are optimistic and expect to receive final approvals soon.”

The Hong Kong government has been aggressively promoting the adoption of electric vehicles, with approximately two-thirds of the city’s 3,000 EVs coming from Tesla. As an incentive, the government waives taxes on new vehicle registration for individuals and businesses, and also has a $300 million fund to subsidize green technology upgrades for the city’s transportation providers. However, green tech is not the same as self-driving technology, so the company’s positive environmental impact may not do much to alleviate concerns about the regulations of autonomous cars.

What effect will Hong Kong’s decision have on Tesla’s autopilot software and semi-autonomous technology in general? As automakers roll out increasingly advanced self-driving functionality, how much will regulators get in the way and how will these companies overcome the obstacles that they face?