New California AV rules shift reporting and enforcement

The California Department of Motor Vehicles (DMV) has released two new sets of regulations for autonomous vehicle (AV) testing and deployment. The rules, which are 100 pages long, allow law enforcement to cite AV companies for traffic violations committed by their vehicles. Under this “Notice of Autonomous Vehicle Noncompliance” rule, manufacturers must report violations to the DMV within 72 hours. It appears there is not a monetary fine attached to these violations; instead, they serve as data for the DMV to monitor performance. The framework also permits heavy-duty vehicles equipped with AV technology to test and deploy on public roads. Autonomous trucking company Kodiak is already preparing documentation to apply for permits under these rules, which also mandate two-way communication links with a 30-second response time.

While some updates are welcomed, industry insiders have raised concerns about the new data collection and sharing requirements. Kirsten Korosec, a TechCrunch reporter, noted that “burdensome” was the word that came up in every conversation she had with AV industry representatives. However, the industry largely welcomed the removal of annual disengagement reports—which detailed instances when human drivers had to take over control of the vehicles. These have been replaced by a new reporting metric: “dynamic driving task performance relevant system failure,” which is intended to provide a clearer way to measure system failures.

Beyond California, several major developments occurred across the mobility sector:

• BMW i Ventures launched a new $300 million fund to invest in startups in North America and Europe working on agentic AI and physical AI, bringing its total capital under management to $1.1 billion.
• Sereact, a European robotics startup, raised $110 million in a Series B funding round.
• Rivian restructured its Department of Energy (DOE) loan, downsizing it from $6.6 billion to $4.5 billion, and adjusted its Georgia factory plans to build a single 300,000-vehicle capacity factory instead of two 200,000-vehicle capacity structures.
• Spirit Airlines is preparing to shut down after failing to secure a $500 million lifeline, with operations expected to cease around 3 a.m. ET Saturday.
• Baidu faced setbacks in China, which suspended issuing new licenses for autonomous vehicles after the company’s robotaxis suddenly stopped.
• Faraday Future paid around $7.5 million to a company controlled by its founder in 2025.
• Uber partnered with Hertz for robotaxi maintenance and Expedia for hotel bookings, giving U.S. users access to more than 700,000 hotels worldwide.
• Vay, a remote driving technology startup, expanded its fleet to 175 vehicles and surpassed 60,000 rides.

Why it matters

The California DMV’s new regulations signal a shift toward more granular, data-driven oversight of autonomous vehicles, moving away from simple disengagement metrics toward specific failure reporting and direct law enforcement accountability.