New Jersey’s Robotaxi Bill Could Ban Tesla Over Lidar
New Jersey could ban Tesla’s Robotaxi with one line about sensors.
New Jersey is poised to become the first state to enact a sensor mandate for driverless cars, requiring them to be equipped with a camera plus two backup sensing systems. Tesla, relying solely on cameras, would be excluded unless it modifies its hardware.
July 9, 2026 – 7:15 pm
For over a decade, the self-driving car debate has raged primarily behind closed doors. Now, New Jersey wants to make a decisive legal statement.
A bill working its way through the state legislature would mandate that any company operating fully driverless cars in New Jersey include a camera system supplemented by two other sensing technologies. Practically speaking, this means lidar and radar.
Tesla currently builds its Robotaxis with cameras alone. If passed, this legislation would prevent Tesla’s Robotaxi from operating in the state unless they upgrade their hardware.
The Verge first reported on these details.
This measure would make New Jersey the first state to directly regulate driverless car sensors through law. A similar bill is already under consideration in neighboring New York, and if either passes, other states could follow suit, dealing a significant blow to Elon Musk’s camera-only approach.
What the Bill Says
The legislation, originally Senate Bill 1677, was amended by a Senate committee substitute and now sits as a three-year pilot program for fully autonomous vehicles under the Department of Transportation’s jurisdiction.
Key provisions:
- Every vehicle in the pilot program must carry a camera system and two distinct sensing modalities capable of detecting and tracking obstacles even if the cameras fail.
- These systems must meet requirements for pedestrian detection, automatic emergency braking, and lane keeping.
- Vehicles must log data from 30 seconds prior to any crash, complete 50,000 miles of testing before going driverless, and carry at least $5 million in insurance.
- They are prohibited from operating in school zones, construction zones, or areas with high pedestrian collision rates.
A Quiet Shot at ‘Full Self-Driving’
The bill also addresses marketing practices. Dealers and carmakers must provide buyers with a written description of what a partial automated system can and cannot do. They are prohibited from implying that the car can drive itself, which has been a point of contention for Tesla’s "Full Self-Driving" (FSD) labeling and advertising.
Cameras vs. the World
Elon Musk has invested heavily in the belief that cameras and artificial intelligence can power fully autonomous vehicles. "We turned off the radars in Teslas to increase safety," he wrote last year, championing cameras as the sole sensor. He argues that adding more sensors creates conflicting signals, a problem he calls "sensor contention."
However, almost every other player in the self-driving car space favors a multi-sensor approach, combining cameras with lidar and radar for safer and more reliable navigation.