Tesla is already putting a lot of resources into improving Autopilot and FSD. I'm not sure how regulators are going to help that process, and I think there are a couple possible pitfalls:

(1) Will they take relative risk into account? If the car sometimes crashes but less often than humans, will that be sufficient, or considered a flaw because it's not perfect and regulators hate looking bad?

(2) Will they take progress into account? If the car drives worse than humans but its accident rate drops 10% per year, then after some number of years we'll accumulate fewer total accidents than if we hadn't allowed progress to continue. That's important because progress won't continue without lots of cars on the road using Autopilot and FSD betas.