Musk Gains Big as Trump Plans Push Self-Driving Cars
1min read President-elect Donald Trump's transition team is reportedly prioritizing the development of a federal framework for fully autonomous vehicles, according to sources familiar with the matter. This initiative, led by the Department of Transportation, could pave the way for vehicles without human controls, such as steering wheels or pedals, directly benefiting Tesla.
Tesla shares surged 8% in premarket trading on Monday, while ride-hailing giants Uber and Lyft saw declines. Elon Musk, a vocal supporter of Trump during his campaign, appears to be reaping the rewards of his endorsement.
Under current regulations, companies face significant challenges in deploying large numbers of fully autonomous vehicles. Tesla, which plans to manufacture such vehicles, stands to benefit greatly if the Trump administration succeeds in creating a regulatory framework. The transition team is reportedly seeking policy leaders to spearhead this initiative.
However, it's worth noting that previous attempts to legislate self-driving vehicle regulations have repeatedly stalled in Congress. A similar bill passed the House during Trump's first term but failed in the Senate. Efforts under President Biden's administration also ended in failure during his first year in office.
The autonomous vehicle market represents a massive economic opportunity. According to Frost & Sullivan, Robotaxi services are expected to become commercially viable by 2026, with the global market projected to grow from $290 million in 2025 to $66.6 billion by 2030. China is set to lead the market, with forecasts suggesting it could reach $200 million by 2025 and $39 billion by 2030.
Wedbush Securities estimates that AI and autonomous driving alone could add $1 trillion to Tesla's valuation. Analysts predict that regulatory hurdles Tesla has faced in deploying its Full Self-Driving (FSD) technology may be significantly reduced under Trump's administration, accelerating the rollout of these key initiatives.