I think this is the most sane, non-politicized way of stating what happened here. You can speculate as to the motives of the regulator (short timeframe, high costs, certain friends), but the fact of the matter is this was a major flaw in his plan which he didn't see coming.
[edit] unless his real plan was to go to China all along...
Do I have to check with every relevant government agency for permission every time I do something? If an endeavor not specifically outlawed, it should be presumed legal.
If the endeavor is selling a product for use in a highly regulated industry where the failure case is death, then of course you have to work with regulatory agencies. It's not like the automotive industry is a mysterious minefield hidden in uncharted territory.
If he couldn't answer these very basic questions 2 months away from shipping these things, WTF is he even doing. If he hadn't proactively initiated communications with NHTSA long before now, WTF is he even doing. These are all excruciatingly, painfully obvious things to do, and the fact that it never occurred to him to do them brings into question his judgement about pretty much everything, from technical issues to basic life choices. At this point I don't think I'd trust this guy to mow my lawn, much less develop autonomous vehicle software. His reaction to all of this and how he deals with adversity is just as revealing about his competence as everything he's done so far.
His particular endeavour is specifically outlawed (e.g. blocking the rear view mirror). The NHTSA is simply trying to establish whether or not he complies with the existing regulations - clearly, he doesn't.
