Tesla (TSLA.US) to get a major boost? Trump team plans to scrap self-driving accident reporting

Tesla (TSLA.US) shares closed up 4.34% to $436.23 on Friday, nearing an all-time high. Meanwhile, the S&P 500 was flat and the Dow Jones Industrial Average dipped 0.1%.

President Trump may cancel a requirement for automakers to report accidents involving vehicles using advanced driver assistance systems (ADAS) such as adaptive cruise control, according to reports. The policy, which was created by the National Highway Traffic Safety Administration (NHTSA), aims to collect key data in a timely manner by forcing mandatory reporting, thus strengthening safety monitoring of autonomous and driving assistance systems.

NHTSA responded to a request for comment by saying: "This general order is a pioneering tool that allows NHTSA to collect accident data involving vehicles with ADAS and autonomous driving systems, including heavy trucks equipped with autonomous driving technology, in a timely manner. This requirement significantly enhances NHTSA's ability to monitor safety defects, allowing it to learn of potential safety issues within a day."

Tesla has benefited from this policy, as it reported the most driving assistance accidents. The company's vehicles automatically collect relevant data through vehicle-to-vehicle technology and have reported nearly 1,600 related incidents to NHTSA. Honda, which ranked second, reported fewer than 100 incidents, with about 1,450 incidents reported from Tesla's vehicle-to-vehicle data, accounting for about 70% of NHTSA's database.

While the database itself has had a limited direct impact on Tesla's stock price, the market may view it as a signal of a more friendly stance from the Trump administration toward emerging driving technologies. Tesla plans to launch an autonomous taxi service by 2025. Dan Ives, an analyst at Wedbush, noted in a report that services such as autonomous taxis could bring tens of trillions of dollars of market opportunities for Tesla.

Moreover, Tesla unveiled a new feature called "Smart Summon" in China on Friday. The autonomous driving feature reportedly allows owners to summon their vehicles remotely in a parking lot or private driveway, adding a highlight to its autonomous driving technology development.

Despite the excitement about Tesla's future, Wall Street analysts remain cautious about its stock's continued rise. Currently, only 44% of analysts rate the stock "buy," with an average target price of $275.62, 34% lower than the current level. However, Wedbush analysts are more optimistic, predicting that Tesla's market value could reach $2 trillion by the end of 2025. They noted that "full self-driving (FSD), autonomous technology, and the launch of Cybertruck in early 2026 are key to Tesla's future growth."