Key Points
- Tesla shares rose by 5.63% following the news of federal self-driving vehicle framework plans.
- Tesla recently showcased the “Cybercab,” a concept car designed for fully autonomous operation.
- Tesla plans to roll out unsupervised Full Self-Driving technology in Texas and California by next year.
- Elon Musk’s role in the new Department of Government Efficiency aligns Tesla with Trump’s deregulation agenda.
Tesla shares soared on Monday following reports that President-elect Donald Trump’s transition team plans to prioritize establishing a federal framework to regulate self-driving vehicles. By 12:54 PM ET, Tesla stock had gained 18.05 or 5.63% to 338.77 USD.
The proposed federal framework could significantly benefit Tesla, which has been at the forefront of autonomous vehicle development. Tesla’s Full Self-Driving (FSD) feature, currently in a supervised mode requiring a human driver, is a critical component of the company’s long-term goal of deploying a fleet of robotaxis. Last month, Tesla unveiled the “Cybercab,” a $30,000 two-seater vehicle designed without steering wheels or pedals, highlighting its vision for an autonomous future.
Tesla CEO Elon Musk has long advocated innovation in self-driving technology. The prospect of a supportive regulatory framework aligns with Musk’s plans to launch unsupervised FSD technology in Texas and California by next year in Tesla’s Model 3 and Model Y vehicles. While Tesla has faced delays in achieving fully autonomous driving capabilities, the company remains committed to revolutionizing transportation.
The Trump administration’s support for such initiatives could further enhance Tesla’s standing in the autonomous vehicle industry. Trump recently appointed Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE), tasked with reducing regulatory hurdles, bureaucracy, and wasteful expenditures. These measures could pave the way for faster implementation of self-driving technologies.
Despite Tesla’s advancements, competitors such as Waymo, a division of Alphabet Inc., have already launched autonomous vehicles on public roads, giving them a head start in the robotaxi market. However, a standardized regulatory framework could level the playing field and accelerate innovation across the sector.
As the Trump transition team seeks policy leaders for the U.S. Transportation Department, including former Uber executive Emil Michael and Republican representatives Sam Graves and Garret Graves, the potential for regulatory clarity adds momentum to Tesla’s ambitious goals.
