Emerging Cybersecurity Technologies in Self-Driving Vehicles: Report

This report examines self-driving vehicles as an emerging cybersecurity technology, focusing on their development, main features, and the critical need for robust security measures. It explores the role of companies like Tesla and other automakers in advancing autonomous vehicle technology while addressing the associated cybersecurity risks. The report highlights real-world examples, the role of the federal government in supporting and regulating this technology, and the benefits and drawbacks of government involvement. It also discusses the importance of prioritizing research and development to improve cybersecurity, addressing potential vulnerabilities and the proactive steps being taken by industry stakeholders. The report emphasizes the importance of protecting against cyber threats to ensure the safety and reliability of self-driving vehicles, which are expected to become commonplace in the near future.

Running head: EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 1
SELF-DRIVING VEHICLES
Individual Assignment #1: Emerging Cybersecurity Technologies
Victor J. Florido
University of Maryland University College
UMUC CSEC-670
11/17/2016
Author Note
This paper was prepared for Cybersecurity Capstone Class
(CSEC-670), taught by Prof. Shapna Pal

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 2
Table of Contents
Introduction …………………………………………………………………………… 3
Self-driving Vehicles Prioritized Research and Development to Improve
Cybersecurity.………………………………………………..……………...…..……...4
Developments and Main Features of Self-driving Vehicles......………..………...… 5
Use of Self-driving Vehicles as an Emerging Cybersecurity Technology.... 7
Real-World Examples of Self-driving Vehicles and Its Emerging Cybersecurity
Technology...……………………………………………………………….……...... 8
Role of the Federal Government in Support and Nurturing of the Emerging
Cybersecurity Technologies: Self-driving Vehicles…………..……........................... 10
Benefits and Drawback from Federal Government Support to Self-driving
Vehicles………………………………………………………………...……….…... 11
Real-World Examples Supporting the Development of Self-driving Vehicles….….13
Conclusion ……………………………………………………………………………... 14
References ……………………………………………………………………………… 18

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 3
Introduction
There is a consensus among experts in the transportation industry is that
approximately within the next decade; self-driving vehicles will become the norm in the
United States and other developed nations. Tesla Motors, Inc. has become the pioneer
and a worldwide enterprise that mainly “designs, produces and markets electric powered
vehicles and components. Unfortunately cybersecurity vulnerabilities could impact
safety of life rather quickly. Cyber experts within the auto industry expressed their
concerns. In fact, 55 percent of corporate risk managers surveyed named cybersecurity
as their top concern about self-driving cars. Evidently, there is a need for safety
standards in regards to electronic systems protection, which includes the “security needs
for those electronic components to prevent unauthorized access” (NHTSA, 2016).
On the other hand, the USDOT (United States Department of Transportation) is
already taking a proactive approach and released new guidelines for improving motor
vehicle cybersecurity. This guidance also focuses on the importance of making
cybersecurity a top leadership priority for the automotive sector. It is also important to
keep in mind the fact that governments around the world are also fully committed to
develop safe electric vehicles as a substitute of transportation in their markets. Therefore,
they are equally interested in developing safe guidance against cybersecurity
vulnerabilities.
This paper will discuss self-driving vehicles as an emerging cybersecurity
technology and how it combines with prioritized research and development that improves
cybersecurity. It will clearly define the emerging cybersecurity technology of self-driving
vehicles and its main features. Furthermore, it will examine how Tesla and other auto

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 4
makers are using the emerging technology of autonomous vehicles and provide real-
world examples of the use of this emerging cybersecurity technology. On the other hand,
it will explain the role of the federal government in the support and nurturing of the self-
driving vehicles, the benefits and drawbacks that the government may create by its efforts
to support autonomous vehicles, as well as real-world examples.
Self-driving Vehicles Prioritized Research and Development to Improve
Cybersecurity
According to a survey conducted by Munich Re, Webb (2016) stated that “The
world’s second-biggest reinsurer found that 55 percent of corporate risk managers
surveyed named cybersecurity as their top concern about self-driving cars. Cybersecurity
included the potential hacking of an automated car’s data systems as well as the failure of
smart road infrastructure.” Moreover, Mike Scrudato, the head of Munich Re’s mobility
operations, explained how cybersecurity is a new experience when it comes to
automobiles in general, but autonomous vehicles are even more susceptible to
cyberattacks because all the new features have an unidentified number of unknown
vulnerabilities. In other words, Mike Scrudato added “One of the factors that could
increase premiums is the cyber exposure because there is no real cyber product being
purchased in relation to auto today” (Webb, 2016).
Additionally, to facilitate this discussion, several stakeholders met to discuss key
vehicle cybersecurity topics. Specifically, this year, in January 2016, a cybersecurity
summit was organized and “over 300 people attended this meeting. These attendees
represented more than 200 unique organizations including 17 original equipment
manufacturers (OEMs), 25 government entities, and 13 industry associations” (NHTSA,

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 5
2016). This meeting was an exceptional opportunity for a group of the stakeholders to
identify actionable steps for the vehicle manufacturing industry to effectively and
promptly address autonomous vehicle cybersecurity challenges. Consequently, in
February 2016 a follow up meeting took place with other government agencies to discuss
possibilities for collaboration among Federal partners to aid the industry improve
cybersecurity in its autonomous vehicles. This is a positive sign of how the automobile
industry is moving toward the right direction regarding cybersecurity and its
repercussions. Around the same time, a formal agreement with 18 automakers was
finalized on proactively address safety principles, including an objective to “explore and
employ ways to work collaboratively in order to mitigate cyber threats that could present
unreasonable safety risks.”
Developments and Main Features of Self-driving Vehicles
The Figure A below (Mangram, 2012, p. 292) shows the four market drivers that
have the greatest influence on the competitive position of battery electric vehicles
(BEVs). The first factor to consider is the technological developments, its advances in
battery technology and overall vehicle performance improvements. Secondly,
infrastructure developments, such as the spread of recharging stations, smart-grid
developments, etc. Third factor is the economics of the energy market. In other words,
how the price of electricity compares to the price of gasoline. Last but not least is the
implementation of public policy, which includes cybersecurity.
Technological
developments, such
as advances in
battery technology,
vehicle performance
improvements, etc.
Prices of gasoline
vs. Electricity
Building recharging
stations, smart-grid
developments and
other viral
infrastructure
requirements
Cybersecurity
Policies. i.e. Hackers,
network breaches
among other security

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 6
Technological developments: the progress of the BEV market is highly
depending upon constant improvements in core technologies, which includes its batteries
and total performance. For example, “improvements in battery characteristics such as
range/power, production costs, safety and reliability. [It also encompasses other
mechanical] improvements such as torque, efficiency and reliability” (Mangram, 2012, p.
291).
Infrastructure development: experts suggested “that in order for the BEV
industry to gain significant global market share, [charging station infrastructure must be
developed to a similar scale as the existing] gasoline powered vehicle infrastructure.” In
addition, as opposed to relying on home chargers, which take up to eight hours, a more
practical network of quick-charging stations with a capability to rapidly charge a BEV in
less than 30 minutes (Mangram, 2012, p. 293).
Energy economics: The entire economics of the electric vehicle sector involves a
comparative analysis between the price of electricity and the price of gasoline. Even
though both are subject to change, crude oil price volatility seems to destabilize
investment in alternative energy sources. The price of gasoline is entirely linked to
global oil prices. On the other hand, electricity prices in most countries are “more
directly related to the prices of natural gas and coal. [Largely, this trend and] other major
market drivers are highly favorable to BEV commercialization” (Mangram, 2012, p.
295).
Public policy: every key factor mentioned above is directly affected by public
policy. This is because the transportation sector has become a central point for global
policymakers due to damaging greenhouse gases, but especially how cybersecurity will

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 7
shape the market as it develops. Once BEVs become a significant part of the
transportation sector, it will be attractive enough to other nations or groups with the intent
to damage critical infrastructure, similar to the sensitivity of the energy sector nowadays.
Use of Self-driving Vehicles as an Emerging Cybersecurity Technology
Autonomous vehicles have a new Autopilot system that will have “a trio of front-
facing cameras paired with an enhanced radar array. [Tesla is keeping the existing]
forward-oriented radar system but will be adding additional sensors to build a sound-
based, real-time model of the area immediately around the car. [Additionally,] the
updated system will reportedly enable the semi-autonomous cars to read stop signs and
traffic lights, allowing drivers keep Autopilot mode engaged even when not on the
highway” (BI Intelligence, 2016).
Even though Elon Musk stated, Tesla vehicles are “a very sophisticated computer
on wheels, [and added, we are] a software company as much as a hardware company.
[But, the goal has not changed since he founded Tesla in 2003. Elon Musk stated then
that Tesla wants] “To drive the world’s transition to electric mobility by bringing a full
range of increasingly affordable electric cars to market” (Stringham, Miller & Clark,
2015). They certainly have accomplished that but now as an emerging cybersecurity
technology; Tesla and other auto makers developing self-driving vehicles are dealing
with a number of high cybersecurity risks. The real problem is most of these
vulnerabilities are unknown to them.
Real-World Examples of Self-driving Vehicles and Its Emerging Cybersecurity
Technology

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 8
Regardless of the global technological developments achieved “by Tesla in terms
of technological developments, global branding and market adoption, [it continues to be a
moderately new corporation within an emerging industry, when is] compared to the 150-
year-old internal combustion vehicle industry” (Mangram, 2012). Although, as expected,
there is limited literature and even research dedicated to this company, even the
information about the electric vehicle industry altogether is limited as well. Moreover, in
a way, it can be aggravated that the existing research gaps, and current analysis is
“focused almost exclusively on the technological strides made by the company. As such,
an even more serious research gap exists related to the marketing and business aspects of
the company and its products” (Mangram, 2012).
Furthermore, besides Tesla, there has been a great effort from several companies,
such as Google and Uber to introduce self-driving or autonomous vehicles on their own.
Its development and evolvement is having a great impact in the emerging technology of
self-driving vehicles. The increased sophistication of technology has allowed other
companies like Ford, Toyota, Mercedes Benz and specially Tesla the ability “to
culminate eventually in self-driving or autonomous vehicles” (Arinze, Ndubizu, & Sylla,
2016). However, the consensus among experts in the transportation industry is that
approximately within the next decade, self-driving vehicles will become the norm in the
United States and other developed nations. In fact, it has been “projected that
autonomous cars will ultimately become ubiquitous in another few decades, likely
marginalizing and replacing human drivers as their costs fall” (Arinze, Ndubizu, & Sylla,
2016). This trend will attract intruders to develop need malicious code to attack this new
target.

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It is imperative to be completely clear about today’s autonomous vehicles. In
Tesla’s case, its autopilot technology is not entirely “hands-free” because drivers could
not disregard the road and take a nap in the back seat, even when in autopilot mode, there
has to be some contact with the steering wheel (McHugh, 2015). At the same time, if
during autopilot mode the driver grabs the wheel; Autopilot will automatically turn off,
passing control back to the driver. However, even though the wheel does not have
capacitive touch, it does measure torque and therefore, any small movements the driver
makes against it, it feels and knows the driver is there which issues a response.
Right now driverless and semiautonomous vehicles are already a reality and
currently part of the open roads. Tesla, alone, has presently sold tens of thousands of
vehicles with a self-driving feature known as Autopilot as previously described. “The
company has been grappling with the fallout from the death in May [2016] of a Florida
driver who had the car’s Autopilot on, as well as a report last week of another crash in
China where the technology was apparently turned on” (Kang, 2016). Soon after the
accident, Tesla did not hesitate to notify its users of the availability of a new software
update to improve its Autopilot feature and even stated this software update could have
avoided the fatal accident in Florida. Road accidents like this have prevented a faster
development of cybersecurity policies because public safety remains their priority
number one.
Role of the Federal Government in Support and Nurturing of the Emerging
Cybersecurity Technologies: Self-driving Vehicles
Obviously a major challenge and local governments are working to establish
planned rules to enable a friendly environment for this technology. Governments around

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 10
the world are fully committed to develop electric vehicles as substitute transportation
technology. Policymakers are backing up the industry in “form of government subsidies
for electric vehicle producers, consumer price incentives, tax credits for producers and
consumers and sponsorship of technological research and development (R&D)”
(Mangram, 2012, p. 294). The Defense Advanced Research Projects Agency (DARPA)
under the Department of Defense (DoD) developed the first initiative of autonomous
vehicles. This project was designed to cultivate the evolution of self-driving vehicles that
could eventually “be used to transport cargo and other military supplies into combat
zones without endangering the lives of human drivers” (Chow, 2014). This initiative has
created valuable technologies, especially for the military.
Also, the government has been diligently working on every identified issue,
including cybersecurity concerns. Furthermore, an article written by IEEE (2016) stated
how recently “The USDOT has released new guidelines for improving motor vehicle
cybersecurity.” It recommends a risk-based prioritized identification and protection of all
essential controls and consumers’ personal data. However, the intent is to highlight the
significance of making cybersecurity a top priority for every leadership in the automotive
sector. This consists of taking a proactive approach by adopting and using available
guidance existing standards and best practices. Another example is The U.S. Department
of Transportation’s National Highway Traffic Safety Administration (NHTSA). The
NHTSA is also taking a proactive about protecting autonomous vehicles from malicious
cyber-attacks and unauthorized access by releasing specific guidance for improving
motor vehicle cybersecurity (IEEE, 2016). In details, the proposed cybersecurity
guidance main emphasis is on a layered solution approach to safeguard the designed

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 11
vehicle systems and take appropriate and safe actions, even when a cyber-attack has been
successful.
Besides product development, the guidance created by USDOT proposes BBP
(Best Business Practices) for researching, investigating, testing and validating a set of
cybersecurity measures. Through the NHTSA, the government highly advocates for
“industry self-audit and consider vulnerabilities and exploits that may impact their entire
supply-chain of operations. The safety agency also recommends employee training to
educate the entire automotive workforce on new cybersecurity practices and to share
lessons learned with others” (IEEE, 2016).
Benefits and Drawback from Federal Government Support to Self-driving Vehicles
Although Tesla has become a valuable enterprise, some critics are concerned Tesla
has become a government liability rather than creating a value added product. These
concerns are based on the “$280 million in tax breaks for consumers who purchased
Tesla electric cars, $520 million in Tesla’s sale of regulatory credits, and $1.3 billion in
future tax incentives, mostly tax breaks, for building a battery factory in Nevada”
(Stringham, Miller & Clark, 2015).
Therefore, some are skeptical because due to these market opportunities, Tesla
Motors, Inc. has been receiving massive tax reductions. However, Mr. Musk added an
explanation between reductions in taxes and subsidies mainly to address the hesitation by
some, which includes comments like, “Tesla has not made one honest dollar” and “If
Tesla would stop selling cars, we’d all save some money” (Stringham, Miller & Clark,
2015). Subsidies require the government to actually write checks to companies or
particular individuals “regardless of whether they are producing something of value.”

EMERGING CYBERSECURITY TECHNOLOGIES: SELF DRIVING VEHICLES 12
Although, the regulatory credits from the federal government have an impact in Tesla’s
bottom line, it only represents 7.7 percent of Tesla’s revenue and the company stated they
are expecting this “percentage to decrease as revenue increases” (Stringham, Miller &
Clark, 2015). Figure 2 below graphically reports the gross margins and they have
significantly increased since the introduction of the Model S back in 2012 and that
vehicle is $70,000. Once the Model 3 completely hits the market with a price tag of
$35,000, the growth of current gross margins will be even higher and that will decrease
government’s dependency, but then autonomous vehicles will become more attractive to
hacktivists and other malicious groups.