U.S. considers smart car ban over security issue

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why some smart cars may be banned in the U.S.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04The Dow and the S&P 500 inched up to fresh new record highs on Monday.

00:10Investors were comforted by speeches from several members of the Federal Reserve who

00:14backed the half-percentage point rate cut and favored more easing down the road.

00:19On Tuesday, Wall Street will get quarterly numbers from KB Home, monthly consumer confidence

00:24figures and the latest home price data from S&P CaseShiller.

00:29According to other headlines, the Biden administration is taking aim at smart cars embedded with

00:34Chinese or Russian technology.

00:37The Commerce Department says the ban is necessary due to safety concerns.

00:42The proposal rolled out Monday would forbid connected cars with Chinese or Russian software

00:46and hardware from being on U.S. roads.

00:49The technology used to connect vehicles to the internet for functions like self-driving

00:54would be totally prohibited from even being used for test driving.

00:58The ban could also extend to auto tech made in other countries deemed hostile to the U.S.

01:03The software ban is to go into effect in 2027, while the hardware ban is set to go into effect

01:09for the 2029 model year.

01:11Commerce Secretary Gina Raimondo said, quote, when foreign adversaries build software to

01:16make a vehicle that means it can be used for surveillance, can be remotely controlled,

01:21which threatens the privacy and safety of Americans on the road.

01:25In an extreme situation, a foreign adversary could shut down or take control of all their

01:30vehicles operating in the United States, all at the same time, causing crashes, blocking roads.

01:37While there aren't many Chinese or Russian auto imports into the U.S., the Commerce Department

01:42says it's getting ahead of an industry where supply chains are globally interwoven.

01:48That'll do it for your daily briefing from the New York Stock Exchange.

01:51I'm Conway Gittins with The Street.

01:55Thanks for watching.

01:56See you next time.

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