Nobody should be able to sell any cars at all unless they can demonstrate decent headway in self-driving research.

Car manufacturers should be put on notice that the government expects 10% annual reduction in deaths on the roads every year for the next 20 years. If their car brand doesn't keep up with that, then they're gonna be fined $10M per excess death (for selling a dangerous product). They can achieve that any way they like, but a decently working self driving system is probably the only thing thats gonna let them continue to sell cars a decade from now.

Are you saying Tesla should stop calling it FSD? Or that regulators should prohibit certain driver assist features without more strict regulatory approval?

If Tesla were putting actually driverless (or cars without pedals and wheels) on the road, I'd be with you.

The FAA does a pretty good job for aircraft some errors notwithstanding, I don't see why there couldn't be a similar institution for road vehicles. Oh, wait: https://www.ntsb.gov/Pages/home.aspx