California Autonomous Vehicle Testing Drops 50% - Reasons Why

Slowdown in Self-Driving Vehicle Testing on California Roads

Recent data released by the California Department of Motor Vehicles indicates that technology firms involved in the development of autonomous vehicle technology have reduced their testing activities on public roadways within the state.

Decreased Testing Mileage

A total of 4.5 million miles were accumulated during autonomous vehicle testing in 2024. This represents a 50% decrease compared to the figures recorded in the preceding year. These miles encompass both vehicles operating with human safety drivers and those authorized for fully driverless operation.

The reduction is particularly significant in the realm of driverless testing. The DMV reports a substantial 83% decline, falling from 3.26 million miles in 2023 to only 552,895 miles in the last year.

Disengagement Reports and Industry Shifts

The DMV also published its annual disengagement reports, documenting instances where human drivers were compelled to regain control due to technological malfunctions or safety issues. It’s important to note that these reports have faced criticism due to inconsistencies in reporting standards across companies, hindering direct comparisons of autonomous system performance.

The current data reflects a changing landscape within the industry, influenced by Waymo’s transition to a commercial robotaxi service and the suspension, followed by the complete closure, of Cruise operations by its parent company, GM.

Reduced Permit Issuance

Historically, Cruise and Waymo have consistently reported the highest testing mileages. For example, Cruise completed 2.6 million test miles in 2023 before the DMV suspended its permits in October. Testing did not resume in California for Cruise. Waymo, meanwhile, is prioritizing commercial deployments in San Francisco and Los Angeles over continued testing.

Over the past three years, the number of new permits issued by the DMV for testing vehicles with a human driver has steadily decreased. Four permits were issued in 2022, followed by two in 2023, and just one in 2024.

Fewer Active Participants

Currently, 31 companies hold permits for testing with a safety driver. However, only 11 of these actually engaged in public road testing during 2024. Nine companies that submitted reports for the 2023-2024 period have discontinued testing and withdrawn from the program, as indicated by the DMV. Notably, Tesla reported no autonomous miles driven.

Six companies – AutoX, Nuro, WeRide, Waymo, Apollo Autonomous Driving, and Zoox – are authorized for driverless testing. Among these, only Mercedes-Benz, Nuro, and Waymo possess permits enabling commercial operations, leveraging advanced driver assistance systems or fully autonomous capabilities.

From Hype to Consolidation

This situation contrasts sharply with the earlier, more optimistic phase of autonomous vehicle development, characterized by substantial venture capital investment and a larger number of participating companies – as many as 60 held testing permits. A period of industry consolidation began in 2019.

Today, a smaller number of companies are prepared to invest heavily in the ongoing development of autonomous vehicle technology. However, recent funding rounds demonstrate continued interest, with Wayve securing $1 billion in May and Waymo raising $5.6 billion in November.

A Consolidated Market

The outcome is a reduced number of active players, with Waymo leading in both testing and commercial mileage. This results in a more consolidated industry with limited competition in the commercial sector.