Tesla's Stock Soars Amid Hopes for Autonomous Vehicle Regulatory Boost Under Trump
1min read Tesla's stock experienced a significant surge on Monday, reacting to reports that President-elect Donald Trump's transition team is planning to establish a federal regulatory framework for autonomous vehicles. This initiative is seen as a priority for the U.S. Department of Transportation.
Elon Musk, Tesla's CEO and a crucial business figure supporting Trump’s return to the White House, now stands to benefit from the closer ties he has forged with the Republican politician. Last week, Trump appointed Musk alongside entrepreneur Vivek Ramaswamy to lead the newly created Department of Government Efficiency, aimed at dismantling bureaucracy and reducing unnecessary regulatory burdens.
The development of a federal framework for regulating autonomous vehicles represents a significant opportunity for Tesla. The company has long promised the rollout of fully autonomous vehicles, yet it has not delivered a driverless model so far. Tesla envisions a fleet of automated "robotaxis" that can transport passengers without human oversight.
Last month, Tesla showcased its anticipated robotaxi, a "Cybercab" concept car priced at $30,000, which lacks a steering wheel and pedals. However, Tesla faces competition in the autonomous ride-hailing sector, already trailing behind companies like Waymo, which have successfully launched autonomous vehicles for public road usage.
Musk stated during a Tesla event unveiling the Cybercab and Robovan models that he expects “supervised” full autonomy to be activated on Model 3 and Model Y vehicles in Texas and California next year. Currently, Tesla’s Full Self-Driving (FSD) system requires drivers to remain alert and prepared to take control as needed.
As Musk calls for federal approval of autonomous vehicles, the Trump administration's proposed framework could potentially expedite the testing process for FSD technology. Nonetheless, experts assert that regulatory delays are not the primary hurdle for Tesla, but rather the necessity for further development to eliminate reliance on driver intervention.
Trump's electoral victory has also contributed to Tesla's stock rally, pushing the company's market valuation past the $1 trillion mark. Investors are optimistic that Musk’s enhanced influence with the Trump administration will lead to a relaxation of regulations governing autonomous driving.