Amazon's Autonomous Vehicle Subsidiary Zoox Gets NHTSA Exemption to Operate Robotaxis in US

Amazon's (AMZN) autonomous vehicle subsidiary, Zoox, has received a key exemption from the National Highway Traffic Safety Administration (NHTSA) to operate on public roads across the US. This approval marks a significant step for Zoox, allowing it to grow its business and launch its robotaxi service later this year. The exemption is part of a change in US policy and comes with conditions, including the removal of claims that its vehicles meet specific federal safety rules.

Amazon's (AMZN) autonomous vehicle subsidiary, Zoox, has secured a significant regulatory milestone with an exemption from the National Highway Traffic Safety Administration (NHTSA) to operate its self-driving vehicles on public roads across the United States. This approval marks a substantial step for Zoox, enabling the company to expand its operations and launch its robotaxi service later this year. The exemption, granted after a probe into Zoox's self-certification process, allows Zoox to conduct demonstrations and potentially pave the way for broader commercial deployment [1].

The NHTSA's decision comes as part of a broader shift in US policy aimed at accelerating the deployment of autonomous vehicles. The agency's recent expansion of the Automated Vehicle Exemption Program to include domestically produced vehicles has facilitated this approval. The exemption includes conditions such as the removal of statements claiming Zoox's vehicles meet all federal motor vehicle safety standards, reflecting the ongoing need for rigorous safety assessments [1, 3].

Zoox, which Amazon acquired in 2020, has been preparing for this expansion. The company has opened a new manufacturing facility in Hayward, California, with plans to produce 10,000 vehicles annually once at full scale. Zoox has also targeted Las Vegas as its initial commercial market, aiming to begin service there later this year [3].

This development is not only significant for Zoox but also for the broader autonomous vehicle industry. The easing of regulations could benefit competitors like Tesla, which has announced plans to produce a two-seater CyberCab without traditional driving controls. The NHTSA's move to expedite the review process for self-driving vehicle exemptions is expected to foster innovation and accelerate the deployment of autonomous technologies [3].

References:
[1] https://www.reuters.com/business/autos-transportation/us-issues-exemption-self-driving-zoox-vehicles-closes-probe-2025-08-06/
[2] https://indianexpress.com/article/world/us-proposes-new-drone-rules-that-could-lead-to-starbucks-amazon-deliveries-10171921/
[3] https://www.cnbc.com/2025/08/06/amazon-zoox-robotaxi.html