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Lawmakers in New Jersey are currently debating a proposed law that would introduce a three-year pilot programme for autonomous vehicles across the state. However, Tesla may find itself excluded from participation due to a technical decision by the Texas-based automaker regarding its self-driving systems.

The legislation, officially designated as S1677, seeks to establish guidelines for autonomous vehicle testing in collaboration with the New Jersey Department of Transportation (DOT) and the New Jersey Motor Vehicle Commission. One of the key stipulations is that operators of autonomous vehicles must use camera-based systems in conjunction with at least two other types of sensor technologies, such as lidar or radar. Since Tesla’s self-driving system relies solely on cameras, the company could effectively be prohibited from conducting tests in New Jersey under the current proposal.

The bill’s provisions are largely straightforward. It mandates that companies seeking to test autonomous vehicles submit a detailed “law enforcement interaction plan” and outline their redundant safety systems, crash-avoidance mechanisms, and data recording capabilities. The specific clause that would restrict Tesla states that autonomous vehicles must “be equipped with crash-avoidance systems, including a camera system and two distinct sensing modalities that can detect and track obstacles in case of camera failure.” The legislation also prefers that vehicles retain traditional steering wheels and pedal controls. While early-stage testing would require human safety drivers, fully autonomous operation could be permitted once benchmarks such as 50,000 crash-free miles are achieved.

According to a report by The Verge, the dual requirement for camera and sensor-based technologies is deliberate. Democratic state senator Andrew Zwicker, who is both the bill’s main sponsor and a physicist, explained, “This is not anti-Tesla. I’m pro-New Jersey safety. At this point, I don’t believe there’s enough evidence that a single sensor combined with software can handle every situation that human drivers can.”

As expected, Tesla has strongly objected to the proposed law and is actively pushing back. The company’s public policy platform, Engage Tesla, has issued a call to action urging Tesla owners to contact New Jersey legislators to oppose the bill. The appeal argues that the proposed autonomous vehicle testing programme would hinder progress, emphasising that Tesla would be legally prevented from testing its systems in the state. The company’s message also references data on roadway fatalities in New Jersey and the impact such a ban could have on mobility for senior citizens.

“Instead of focusing on genuine safety outcomes and performance, this bill specifically excludes Tesla from the New Jersey market,” the company’s statement reads. “Every unnecessary obstacle delays access to life-changing technology for those who need it most. Legislation that blocks Tesla’s proven autonomous vehicle technology isn’t caution — it’s anti-competitive protectionism that will leave New Jersey lagging while other states move ahead.”

Introduced on January 16, the bill is currently being reviewed by the New Jersey Senate Budget and Appropriations Committee. The language of the proposal closely aligns with recommendations from the nonprofit organisation SAVE-US, which advocates for stricter oversight of autonomous vehicle trials. New Jersey is not alone in reconsidering its approach to self-driving regulation — lawmakers in New York are drafting similar measures. Just a day earlier, federal safety regulators criticised autonomous vehicle operators like Waymo for interfering with emergency responders.