- Autonomous vehicle testing in California dropped by 50% in 2024, with driverless testing seeing an even sharper decline of 83%.
- Industry consolidation and regulatory setbacks led to major players like Cruise halting operations, while Waymo shifted focus to commercial services.
- Despite the decline, investment in autonomous technology continues, with Wayve and Waymo raising billions to advance self-driving innovation.
California has seen a sharp decline in autonomous vehicle testing, with total test miles dropping by 50% in 2024 compared to the previous year. The California Department of Motor Vehicles (DMV) reported that self-driving vehicles logged 4.5 million miles on public roads, down from 9 million in 2023. The decrease spans both categories of testing: those with human safety drivers and fully driverless vehicles.
The most significant reduction occurred in driverless testing, which plummeted by 83%, from 3.26 million miles in 2023 to just over 552,000 miles last year. The DMV, which oversees autonomous vehicle testing in the state, also released its annual disengagement reports, highlighting instances where human drivers had to take over due to technology failures or safety concerns. However, inconsistencies in how companies report these incidents make it difficult to assess overall progress in self-driving technology.
Industry consolidation and regulatory setbacks have played a major role in the decline. Waymo, a leader in autonomous vehicle technology, has shifted focus from testing to commercial robotaxi operations in San Francisco and Los Angeles. Meanwhile, Cruise, General Motors’ self-driving subsidiary, halted its California operations after the DMV suspended its permits in late 2023. The company has since shut down its testing program in the state entirely.
The number of new permits issued for testing autonomous vehicles with a human driver has steadily decreased over the past three years. In 2022, four new permits were granted, followed by two in 2023 and only one in 2024. Currently, 31 companies hold permits for testing with safety drivers, yet only 11 actually conducted tests on public roads last year. Several companies, including Tesla, have withdrawn from testing in California altogether, according to DMV records.
Despite the overall decline, some companies continue to invest heavily in autonomous technology. Waymo remains the dominant player, holding commercial operation permits alongside Nuro and Mercedes-Benz. Startups like Wayve, which raised $1 billion in May, and Waymo, securing $5.6 billion in November, signal ongoing interest in the sector. However, the industry has consolidated significantly, reducing competition and leaving a small number of companies leading the charge toward widespread autonomous vehicle deployment.
