The CA DMV is being reasonable about this.  11 companies have applied to test autonomous vehicles on California highways, and some of them may not work very well. After all, Tesla just shipped a beta version of automatic driving, and it wasn&#x27;t very good. Tesla&#x27;s system is just lane keeping plus automatic cruse control (NHTSA level 2) plus hype, minus a hands-on-wheel sensor. Read Road and Track&#x27;s critique.[2]<p>California does have experience in this area.  Caltrans had automatic driving demos in 1997, when Yang and Brin were still students at Stanford.[1]<p>As I&#x27;ve pointed out previously, NHTSA Level 2 systems are not good enough for hands-off driving, but, because they can handle simple situations like normal freeway driving, create the illusion that they are. This is the &quot;deadly valley&quot;. Drivers are just not going to be paying close attention with the system engaged.  It takes several seconds for a driver to detect trouble and take over, by which time it may be too late.<p>NHTSA Level 3 systems (roughly what Google has driving around Mountain View) have real situational awareness and a good driving record. What Google has now should be viewed as a floor for automatic driving competence. Anything less than that, and the system has to make sure the driver&#x27;s hands are on the wheel.<p>On the liability front, Volvo&#x27;s CEO says that the manufacturer must accept liability for accidents when driving automatically.  That&#x27;s probably the way this is going to go.  Tesla would like to off-load that liability onto the driver, but that probably isn&#x27;t the way this is going to go. The first self-driving cars will probably be leased on operating leases, so that insurance, maintenance, and vehicle cost are bundled together.<p>[1] <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=C9G6JRUmg_A" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=C9G6JRUmg_A</a> 
[2] <a href="http:&#x2F;&#x2F;www.roadandtrack.com&#x2F;car-culture&#x2F;a27060&#x2F;model-s-owner-already-has-close-call-while-using-tesla-autopilot&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.roadandtrack.com&#x2F;car-culture&#x2F;a27060&#x2F;model-s-owner...</a>