Tesla shares rose over 5% on Monday following reports that President-elect Donald Trump’s transition team plans to prioritize a federal framework for self-driving vehicle regulations.
This development could streamline the approval process for autonomous vehicles, which currently requires state-by-state approval—a hurdle Tesla CEO Elon Musk has called “incredibly painful.”
The Bloomberg report suggests Trump’s team is recruiting policy leaders for the National Highway Traffic Safety Administration (NHTSA) to create national standards for self-driving technology.
A unified framework could help companies like Tesla, Waymo, and Zoox expand their autonomous vehicle operations.
While Tesla’s Full Self-Driving (FSD) system is still a Level 2 driver-assist technology requiring human supervision, Musk has expressed optimism about achieving unsupervised self-driving capabilities in key markets like Texas and California by mid-2025.
However, the software faces significant hurdles, including safety-critical interventions and ongoing investigations by U.S. auto safety authorities.
Despite these challenges, the report fueled investor enthusiasm, with Tesla’s stock closing at $338.74 on Monday. The company’s shares have surged nearly 28% since Trump’s election victory earlier this month, with markets optimistic about Musk’s close ties to the incoming administration.
Tesla is also pushing hard to boost Q4 sales, cutting lease prices on its Model Y and introducing cost-effective vehicle options like the Cybercab robotaxi, set for production in 2026. A federal regulatory framework could further accelerate these ambitions.
