Trump Administration Plans to Ease Self-Driving Car Regulations, Boosting Tesla's Autonomous Ambitions

Self-driving vehicles rules set to loosen under Trump, report says | Digital Trends

Tesla "has been very clear the future is autonomous", CEO Elon Musk said in October, shortly after unveiling the Cybercab, Tesla's self-driving robotaxi. It now seems that Musk, who was recently nominated to lead a newly-created 'Department of Government Efficiency', is sharing his crystal ball with the incoming Trump administration. Recommended Videos The Trump transition team plans to make a federal framework for self-driving vehicles a top priority for the Transportation Department, according to a Bloomberg report, citing people familiar with the matter. "This would be a huge step forward in easing U.S. rules for self driving cars and be a significant tailwind for Tesla's autonomous and AI vision heading into 2025," says Wedbush analyst Dan Ives. New federal rules under discussion would not only ease regulations around self-driving vehicles, but also raise the cap on the number of autonomous vehicles allowed on public roads, according to the report. Under current rules, each manufacturer is allowed to deploy up to 2,500 self-driving vehicles per year in the U.S. Previous efforts to allow up to 100,000 vehicles have so far failed. Regulators, such as the National Highway Traffic Safety Administration (NHTSA), have so far taken a cautious approach to the deployment of autonomous vehicles and their deployment as robotaxi services. General Motors' backed Cruise was forced to suspend operations last year following a fatal collision. Earlier this year, NHTSA also launched an investigation into Alphabet-owned Waymo following multiple incidents. Waymo currently operates the only functioning robotaxi service in the U.S., with a fleet of about 700 self-driving vehicles on the road in Phoenix, Los Angeles and San Francisco. While Tesla has already held discussions with ride-hailing company Uber for an upcoming robotaxi service, the company's full self-driving software (FSD) -- as currently used in regular Tesla models -- has also come under heavy scrutiny by regulators. Last month, NHTSA opened an investigation into 2.4 million Tesla vehicles equipped with FSD software, following three reported collisions and a fatal crash. The regulator also told Tesla to stop making misleading claims about FSD's autonomous capability and reaffirm that the software provides only a driver assist/support system.

Tesla shares surge on hopes for self-driving rules relaxation

Tesla may soon overcome a critical regulatory hurdle for its autonomous driving system, with Elon Musk's support for Donald Trump appearing to pay off. If the electric carmaker's Robotaxi services receive regulatory approval, it could usher in another phase of meteoric growth for the company. Tesla shares climbed more than 5% on Monday following a Bloomberg report that President-elect Donald Trump's transition team plans to prioritise establishing a new federal framework for self-driving car regulation at the Transportation Department. The proposed rules could significantly benefit Tesla, whose ambitions for autonomous ride-hailing services represent a critical next step in the company's growth strategy. Elon Musk, a staunch supporter of Trump during his campaign, has tied Tesla's future to its Full Self-Driving (FSD) technology and Robotaxi business. Tesla's market capitalisation has surged past $1tn (€0.94tn) since Trump's election victory, with shares soaring 37% since election day and rallying 29% year-to-date. Before the election, Tesla had been the weakest performer among the "Magnificent Seven" US tech giants. Elon Musk, who became Tesla's CEO in 2008, is widely credited with kickstarting the electric vehicle revolution. While Tesla experienced meteoric growth over the past decade, recent years have seen weakened global demand and intense competition from Chinese rivals, prompting the company to seek new avenues for growth. At the "We, Robot" event in October, Musk unveiled Tesla's Robotaxi, an autonomous Cybercab service with no steering wheels or pedals. The model, entirely reliant on cameras and artificial intelligence for navigation, is expected to cost less than €27,000 and operate with an average cost of €0.18 per mile. Musk outlined plans to launch the service in Texas and California, with expansion to other states by 2025, contingent on regulatory approval. Mass production of the Cybercab could begin as early as 2026. Despite Musk's ambitious vision, Tesla's FSD system has faced scrutiny from regulators. In the United States, each car manufacturer can deploy up to 2,500 self-driving vehicles per year under exemptions granted by the National Highway Traffic Safety Administration (NHTSA). Last month, the NHTSA launched a probe into Tesla following a fatal incident involving a pedestrian and a driver using Tesla's FSD system, which still requires driver monitoring. Tesla's fully autonomous models, which lack steering wheels and pedals, are expected to encounter significant regulatory hurdles. Under Trump's administration, the Transportation Department may introduce relaxed rules for autonomous vehicles, potentially removing obstacles for Tesla's innovative technology. However, bipartisan approval in Congress will be necessary to pass any new framework, suggesting that regulatory challenges could persist in the near term. Clearing these hurdles would mark a significant milestone for Tesla, facilitating its transition from electric vehicles (EVs) to autonomous vehicles (AVs). A regulatory breakthrough in the US could prompt other regions to accelerate their adoption of autonomous driving regulations. In the European Union, Germany has taken a leadership role by developing level 3 and level 4 frameworks for autonomous driving. The EU has aligned its approach with Germany's, implementing similar regulatory standards to govern these advanced technologies. Level 3 vehicles, which require a safety driver, are already permitted on public roads, while level 4 vehicles, allowing remote control with minimal human intervention, are expected by 2025. Musk plans to introduce Tesla's FSD cars with assistance features in Europe and China in early 2025, aligning with the EU's regulatory timeline. China, a key market for Tesla, has been rapidly advancing its regulatory framework for autonomous vehicles. According to S&P Global, the Chinese government has selected 20 cities to participate in a pilot programme for smart-connected vehicles, with projections of approximately 250,000 level 4 autonomous vehicles being sold for mobility services by 2034. The regulatory advancements in the US, EU, and China signify growing global momentum towards autonomous driving. If Tesla successfully navigates these frameworks, its ambitious Robotaxi programme could redefine the company's growth trajectory and reshape the global transportation industry.

Trump team is seeking to ease US Rules for self-driving cars

By David Welch and Allyson Versprille, Bloomberg News The Tribune Content Agency Members of President-elect Donald Trump's transition team have told advisers they plan to make a federal framework for self-driving vehicles one of the Transportation Department's priorities, according to people familiar with the matter. If new rules enable wider deployment of cars without human controls, it will directly benefit Elon Musk, the Tesla Inc. chief executive officer and Trump mega-donor who's become a powerful fixture in the president-elect's inner circle. He's bet the future of the EV maker on self-driving technology and artificial intelligence. Tesla's stock rose more than 7% shortly after the market open Monday, extending their 28% advance since election day. Shares of Uber Technologies Inc. and Lyft Inc., which could face competition from Musk's long-planned robotaxi network, each fell more than 6% in intraday trading. Current federal rules pose significant roadblocks for companies looking to launch vehicles without steering wheels or pedals in large quantities, which Tesla intends to do. The Trump team is looking to staff the department with leaders who will develop a framework for regulating self-driving vehicles, according to people familiar with the matter, who asked not to be named because they weren't authorized to speak publicly. The work is at an early stage and policy details have yet to be fleshed out. The National Highway Traffic Safety Administration currently permits manufacturers to deploy 2,500 self-driving vehicles per year under a granted exemption. It also has a number of ongoing safety investigations into both autonomous vehicles and driver-assistance systems, including features Tesla markets as Autopilot and Full Self-Driving. While the Transportation Department can set narrow rules through NHTSA that would help clear a path for autonomous vehicles, mass adoption of self-driving cars likely will require a broader act of Congress. A bipartisan legislative measure that's at the early-discussion stage would create federal rules around AVs, two of the people said. "The companies want clarity on vehicles with no pedals and no steering wheel," said Grayson Brulte, founder of The Road to Autonomy, a data and analysis firm focused self-driving technology. "There could be a fight over this, but if a federal framework is implemented, it could usher in the autonomy economy." One candidate for Transportation Secretary is Emil Michael, a former Uber executive who has spoken with Trump's team and potential staffers, according to people familiar with the discussions. Republican Representatives Sam Graves of Missouri and Garret Graves of Louisiana have also been considered to lead the department, the people said. The transition team didn't respond to requests for comment. Waymo, Cruise Tesla is trying to catch up to companies led by Alphabet Inc.'s Waymo that, unlike Musk's automaker, have already been ferrying riders around in vehicles without anyone behind the wheel. Waymo and General Motors Co.'s Cruise have to this point largely only deployed autonomous cars that still have steering wheels and pedals, despite their ability to operate without a human in the driver's seat. This is due to state and federal safety requirements, many of which were written long before the advent of automated-driving systems. While companies can apply for an exemption from those standards to deploy a limited number of vehicles without certain controls, Cruise's petition for one wasn't acted upon for more than two years. In July, GM announced it was abandoning plans for a dedicated autonomous vehicle called the Origin. Autonomous vehicles also have deployed slowly because of safety issues. Cruise pulled its cars off the road for almost a year after one of its vehicles struck and dragged a pedestrian in San Francisco. NHTSA also has launched defect investigations into Waymo and Amazon.com Inc.'s Zoox unit, as well as Tesla's driver-assistance systems. Uber sold off its self-driving car division in 2020, years after one of its test vehicles struck and killed a pedestrian in Arizona. Tesla's Cybercab Musk announced plans last month to produce large numbers of driverless Tesla robotaxis starting as soon as 2026. The company unveiled Cybercab and Robovan models last month that were merely prototypes. Soon after the event, Musk called for a federal approval process for autonomous vehicles. During Tesla's quarterly earnings call, the CEO said he'd leverage a potential role in the Trump administration to push for one. Trump has since named Musk and entrepreneur Vivek Ramaswamy to lead a new Department of Government Efficiency to "dismantle government bureaucracy" and slash spending and regulations deemed overly burdensome. Past efforts to come up with federal legislation to regulate autonomous vehicles have fizzled. NHTSA currently permits manufacturers to deploy 2,500 self-driving vehicles per year under a granted exemption, but legislative efforts to increase that number to as many as 100,000 have repeatedly failed. A bill to do that sailed through the House several years ago during Trump's first term, but the measure has been bogged down in the Senate. An attempt during the first year of the Biden administration to merge the bill with other legislation faltered when some manufacturers tried to include language that would prevent consumers from suing or forming class-action cases. (With assistance from Keith Laing, Hadriana Lowenkron, Craig Trudell, Emily Chang and Ted Mann.)

Trump team is seeking to ease US rules for self-driving cars

Members of President-elect Donald Trump's transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department's priorities, according to people familiar with the matter. If new rules enable cars without human controls, that would directly benefit Elon Musk, the Tesla Inc. chief executive officer and Trump mega-donor who has become a powerful fixture in the president-elect's inner circle. He has bet the future of the EV maker on self-driving technology and artificial intelligence. Current federal rules pose significant roadblocks for companies looking to deploy vehicles without steering wheels or foot pedals in large quantities, which Tesla plans to do. The Trump team is looking for policy leaders for the department to develop a framework to regulate self-driving vehicles, according to people familiar with the matter, who asked not to be named because they weren't authorized to speak publicly. While the Transportation Department, through the National Highway Traffic Safety Administration, can issue rules that would make it easier to run autonomous vehicles, an act of Congress would clear the way for mass adoption of self-driving cars. A bipartisan legislative measure being discussed in early stages would create federal rules around AVs, two of the people said. One candidate under consideration for Transportation secretary is Emil Michael, a former Uber Technologies Inc. executive who has spoken with Trump's team and potential staffers, they said. The work is in its early stages and policy details have yet to be determined, they said. Republican Representatives Sam Graves of Missouri and Garret Graves of Louisiana have also been considered to lead the department, the people said. The transition team didn't respond to requests for comment. Musk in October announced plans to produce large numbers of driverless Tesla robotaxis that lack driver controls starting in 2026. Current US regulations pose significant hurdles to Musk's plans for the so-called Cybercab, including a cap limiting their deployment. He supported federal rules for autonomy on Tesla's third-quarter earnings call, saying he'd use any role with the government to push for a process to allow autonomous vehicles to be used nationwide. The pronouncement prompted a selloff of shares of Uber and rival Lyft Inc. Trump has since named Musk and entrepreneur Vivek Ramaswamy to lead a new Department of Government Efficiency initiative to "dismantle government bureaucracy" and slash spending and regulations deemed overly burdensome. Past efforts to come up with federal legislation to regulate autonomous vehicles have stumbled. NHTSA currently permits manufacturers to deploy 2,500 self-driving vehicles per year under a granted exemption, but legislative efforts to increase that number to as many as 100,000 have repeatedly failed. A bill to do that sailed through the House several years ago during Trump's first term, but the measure has been bogged down in the Senate. An attempt during the first year of the Biden administration to merge the bill with other legislation faltered when some manufacturers tried to include language that would prevent consumers from suing or forming class-action cases.

Tesla Stock Jumps on Trump Team Plan to Ease Self-Driving Car Rules

Musk announced plans in October to produce the robotaxis from 2026 onward. Shares of Tesla (TSLA) are jumping in premarket trading Monday on a report that President-elect Donald Trump's transition team is planning a federal framework for fully self-driving vehicles, as investors bet on easier rules for the company's robotaxi. Tesla Chief Executive Officer (CEO) Elon Musk, who is part of Trump's inner circle, benefits under such a framework as he has made the robotaxi, a vehicle that will be able to drive itself without human supervision, a key focus of the electric vehicle (EV) maker's future. According to Bloomberg, Trump's transition team members have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department's priorities. At the moment, companies looking to sell vehicles without steering wheels or foot pedals en masse, something Tesla is planning, face significant regulatory hurdles, the report said. Present U.S. rules also pose big obstacles for Tesla's plans for a robotaxi, including a cap that limits their deployment, the report added. Musk announced plans in October to produce the robotaxis from 2026 onward. Wedbush analysts led by Dan Ives reiterated their outperform call on the EV maker, saying a federal framework would be "bullish for Tesla" and a "huge step forward in easing US rules for self-driving cars." The analysts, who also stuck with their $400 price target on the EV maker, reiterated that they estimate the autonomous vehicle and artificial intelligence (AI) opportunities to be worth $1 trillion for the company. Wedbush analysts said last week that Tesla, which is less reliant on credits than smaller upstarts, could even benefit from less government support for EVs. Investors expect a Trump presidency to roll back EV credits given under the Biden administration. Tesla shares are rising 6.4% in pre-market trading and have gained almost 30% this year.

Tesla jumps as Musk's 'bet for the ages' on Trump is seen paying off with federal self-driving rules

Tesla stock jumped on Monday after a Bloomberg report said President-elect Donald Trump's transition team is prioritizing the creation of federal framework for fully autonomous cars. Shares leapt 8% to $346.81, bringing the electric car maker's market cap to $1.1 trillion, and Wedbush analyst Dan Ives thinks that's just the start of a rally that will eventually send the valuation to $2 trillion. That's after CEO Elon Musk contributed more than $100 million to help elect Trump and has emerged as a top adviser in his inner circle. "Musk's significant influence in the Trump White House is already having a major influence and ultimately the golden path for Tesla around Cybercabs and autonomous is now within reach with an emboldened Trump/Musk strategic alliance playing out in real-time and very in line with our thesis," he wrote in a note on Sunday. His thesis estimates that autonomous driving alone represents a $1 trillion opportunity for Tesla as the federal government under Trump clears the regulatory "spiderweb" that has been weighing on Musk's vision for self-driving cars. Trump's transition team didn't immediately respond to Fortune's request for comment. Musk has been teasing autonomous capabilities in Tesla vehicles for years. In 2019, the company was preparing an entire ride-sharing vehicle fleet and predicted there would be over a million robotaxis on the road by 2020. That didn't happen. But last month, he unveiled the Cybercab, a self-driving EV with no steering wheel or pedals that he said would carry a $30,000 price tag. Musk speculated it could be available "before 2027" though he admitted he tends to be optimistic with timelines. While gauging Tesla's outlook under Trump, Ives maintained his outperform rating and $400 price target on the stock. He added that the path to a $1.5 trillion and then a $2 trillion valuation will play out over the next 12 to 18 months, with the Cybercab representing "the golden goose." For now, he thinks Tesla is the most undervalued AI play in the stock market today. "In essence, Musk made a strategic and big bet on a Trump White House win that will be known as a 'bet for the ages' for TSLA bulls as now Tesla and Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead," Ives wrote. "The autonomous fast-tracking will be front and center for investors as many of the 2026/2027 goals for Tesla could be accelerated to stay on track with the China timeline for autonomous currently underway."

Tesla stock surges 7% on Trump plan to streamline regulations for...

Tesla shares jumped 7.2% on Monday following a report that President-elect Donald Trump plans to speed along the regulatory process on self-driving vehicles. Trump's transition team is aiming to make a federal framework for fully autonomous vehicles a top priority for the Transportation Department, sources familiar with the matter told Bloomberg. The streamlined regulatory system would greatly benefit Tesla founder Elon Musk, helping Tesla deliver on its longtime promise to release a fleet of fully self-driving cars. "Musk's significant influence in the Trump White House is already having a major influence and ultimately the golden path for Tesla around Cybercabs and autonomous [vehicles] is now within reach," Wedbush analyst Dan Ives wrote in a note. "We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla," he wrote. The NHTSA currently allows manufacturers to deploy 2,500 self-driving vehicles per year and legislative attempts to raise that limit to 100,000 have failed. Current federal rules also hamper automakers' efforts to deploy large quantities of self-driving vehicles without steering wheels or pedals, according to Bloomberg. During Tesla's third-quarter earnings call, the billionaire CEO said he would use any potential position in government to advocate for a federal regulatory framework. The president-elect's transition team and the National Highway Traffic Safety Administration did not immediately respond to a request for comment. Musk, the world's richest person with a net worth of $303.7 billion according to Forbes, outspokenly pushed for a Trump win this year. He created a pro-Trump PAC and donated more than $100 million to the cause, rallied on the president-elect's behalf in swing states and encouraged early voting with a $1 million-a-day sweepstakes. Musk had churned out a barrage of posts on X this year that defended Trump's policies and slammed his opponent, Vice President Kamala Harris. In October, Musk unveiled the "Cybercab," a $30,000 car with no steering wheel or pedals. The company aims to take on taxi cabs and rideshare services like Uber and Lyft by releasing human-less, autonomous cabs. At the October event, Musk said the company will likely have "unsupervised" self-driving Model 3 and Model Y cars available in Texas and California next year. Google's Waymo has already beat Tesla to the punch, releasing fully self-driving vehicles on the road. In June, the company expanded its self-driving service to all users in San Francisco. Trump has since selected Musk and entrepreneur Vivek Ramaswamy, who in January dropped out of the race for the Republican White House nomination, to lead the Department of Government Efficiency. The new agency, called "DOGE," was pitched to Trump by Musk as a way to cut unnecessary government spending. On Sunday, Ramaswamy said he expects entire federal agencies will be "deleted outright," along with massive cuts among federal contractors. Aside from the potentially smoother stamp-of-approval process, Tesla has already reaped the benefits from Trump's win. The stock has grown 27.6% since Election Day - and Musk's net worth is up about $40 billion, according to Forbes. Meanwhile, Uber shares fell 5.8% and Lyft shares dropped 6.9% on Monday as investors fear Tesla's auto-cabs could crush the competition. Trump's team is considering Emil Michael, a former Uber executive, for Transportation secretary, as well as Republican Representatives Sam Graves of Missouri and Garret Graves of Louisiana, sources told Bloomberg.

Tesla's stock gest a 7% boost as Trump turns up the heat on self-driving

Tesla's stock surged over 7% in premarket trading following reports that the incoming Trump administration aims to prioritize a federal framework for fully self-driving vehicles. The announcement has significant implications for Tesla, which has been at the forefront of the autonomous driving movement. The Trump administration's focus on self-driving vehicle regulations aligns with Tesla's strategic goals. CEO Elon Musk, a vocal supporter of Trump, is reportedly well-connected within the new administration. He and former presidential candidate Vivek Ramaswamy have been appointed to lead the newly formed Department of Government Efficiency (DOGE), which aims to streamline government operations and reduce regulatory burdens. According to Wedbush analysts led by Daniel Ives, easing restrictions could substantially benefit Tesla's artificial intelligence and autonomous vehicle initiatives. The firm estimates the AI and autonomous opportunity for Tesla could be worth $1 trillion. They expect that under Trump's leadership, significant progress will be made in clearing past regulatory obstacles that have hampered Fully Self-Driving (FSD) technology. Currently, federal regulations significantly limit the deployment of cars designed to operate without traditional driving controls like foot pedals and steering wheels. The Trump administration is looking for individuals to head the regulatory framework concerning self-driving vehicles, with names like former Uber executive Emil Michael and Republican Representatives Sam Graves and Garrett Graves reportedly under consideration. Tesla recently announced plans to launch a Robotaxi service by 2026, dependent on overcoming existing regulations that could restrain its growth. Analysts believe that Musk's position in Trump's inner circle may set the stage for facilitating the mass adoption and success of the new service. The stock's increase of 28% since the election on November 5 exemplifies the market's optimism regarding Tesla's future under what many consider a more favorable regulatory environment. In another report by CNBC, Tesla shares had jumped over 8.3% in premarket trading following the earlier Bloomberg news, reflecting strong investor interest in the implications of the Trump administration's regulatory focus. Amid these developments, industry experts are recalibrating their outlook on Tesla. They regard the stock as one of the most undervalued AI plays currently available and expect its performance to improve further as favorable policies are enacted. The recent optimism surrounding Tesla can be attributed to expected changes in U.S. transportation regulations aimed at self-driving vehicles. With Trump's administration poised to expedite the regulatory processes, Tesla's ambitious plans could come to fruition much sooner than anticipated. The collaboration between Elon Musk and the Trump administration suggests a strategic alignment that may accelerate the rollout of autonomous technologies. The pressure on government to adapt regulations to accommodate these advancements could reshape the landscape for not just Tesla, but the entire auto industry. For investors, the news indicates a potential shift toward a more innovation-friendly environment, enabling Tesla to leverage its technological advancements. The proposed changes could also stimulate competition among other tech companies entering the autonomous driving space. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities, including Tesla stock.

Trump Team Said to Want to Ease US Rules for Self-Driving Cars

Members of President-elect Donald Trump's transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department's priorities, according to people familiar with the matter. If new rules enable cars without human controls, that would directly benefit Elon Musk, the Tesla Inc. chief executive officer and Trump mega-donor who has become a powerful fixture in the president-elect's inner circle. He has bet the future of the EV maker on self-driving technology and artificial intelligence.

Tesla stock is surging as Trump looks to hand Elon Musk another win

What is 'The Big Lebotski' and how did it help Shake Shack shatter sales goals? Members of Trump's transition team have said they plan to make a federal framework for fully autonomous vehicles a priority for the incoming Department of Transportation, Bloomberg News reported. Current federal rules make it difficult to deploy vehicles without steering wheels or pedals like Tesla's advertised Cybercab. That could be a major boon for Musk, who has repeatedly touted Trump's election win as a victory for the U.S. and his own companies. In October, he told investors that he would use a task force dedicated to slashing government inefficiency to push for a national approach to regulating driverless vehicles. "National approval is important," Musk said during an earnings call. "If there is a Department of Government Efficiency (DOGE), I will try to make that happen." Although the federal government has looked at national regulations for autonomous vehicles in the past, standards and guidance issued by federal regulators have been relatively scarce, leaving it up to local governments to figure out their own approaches. Nineteen states currently have laws on the books allowing driverless vehicles to operate on public roads. Musk has said he expects Tesla to get approval to launch rideshare services in California, Texas, and "some other states" in 2025, along with approval for a "fully autonomous" version of the company's driver-assist software. In October, he said he would be shocked if Tesla failed to get approval in California, where rivals like Google's Waymo and Amazon's Zoox have some operations. Bloomberg reports that bipartisan legislation is being discussed to design federal rules around autonomous vehicles. Without legislation, the Transportation Department would need to issue rules through the National Highway Traffic Safety Administration to make deployment easier. The agency currently allows companies to deploy up to 2,500 self-driving vehicles each year. Tesla stock gained almost 6% in pre-market trading Monday. Shares are up 29% year-to-date, largely thanks to a stock surge following Trump's election victory. Musk has significant influence over the president-elect, although it's unclear exactly how far that goes. He's joined many of Trump's meetings and meals since his victory, including meetings with foreign leaders and ambassadors, and has reportedly requested that SpaceX employees be hired as top government officials, including at the Department of Defense. Last week, Trump tapped Musk and former presidential candidate Vivek Ramaswamy to lead DOGE, which has been described as an outside-of-government group. They aim to cut some $2 trillion from the budget, or about one-third of all federal spending, according to Musk. Musk is expected to play a role in guiding the Trump administration's artificial intelligence initiatives, something that would help both X (META-4.03%), Tesla, and xAI, and participate in discussions over tariffs on Chinese products. Trump's team also plans to kill the $7,500 tax credit for electric vehicle purchases, which has helped both Tesla and its rivals, although Musk expects his company to be less affected than others. Musk's SpaceX could also benefit from Trump's presidency, given its CEO's comments signaling his belief that regulations should be changed so that companies don't need to repeatedly get permits to launch rockets. And over the weekend, Trump appointed Musk ally and Commissioner Brendan Carr to lead the Federal Communications Commission, which will likely help SpaceX's Starlink subsidiary.

Trump Set To Hand Musk 'Golden Path For Tesla' After Reversing Course On Autonomous Vehicle Ban - Tesla (NASDAQ:TSLA)

Donald Trump said he would ban autonomous vehicles from American roads ahead of the 2024 election, but he appears to be reversing course. The future of Tesla Inc TSLA could be decided by autonomous vehicles with the company betting aggressively on the future of its robotaxis. After once threatening to ban autonomous vehicles in America, President-elect Donald Trump may be having a change of heart, bringing music to the ears of Elon Musk and Tesla investors. What Happened: New reports say President-elect Trump has plans to ease restrictions on self-driving vehicles, which could help companies such as Tesla in its push to expand FSD and bring robotaxis to the market. Bloomberg reported the federal framework for autonomous vehicles could be prioritized by Trump's transition team. The report said the Transportation Department could make it easier to operate self-driving vehicles in America. While the plan could prioritize making it easier for companies to test self-driving vehicles, Congress would need to approve legislation to make mass adoption happen. It's worth noting that this is only a report and Trump previously spoke out against autonomous vehicles. Hours before Musk unveiled the Tesla Cybercab in California on Oct. 10, Trump spoke at the Detroit Economic Club and took on autonomous vehicles. "Do you like autonomous? Does anybody like an autonomous vehicle? Know what that is? Right? When you see a car driving along? Some people do, I don't know. A little concerning to me, but the autonomous vehicles we're going to stop from operating on American roads," Trump said. Trump's comments came despite a growing friendship with Musk at the time, who had been campaigning for him in the 2024 election. The comments weren't likely a huge surprise given Trump's largely antagonistic stance toward electric vehicles, often criticizing the vehicles and in some cases blaming them for destroying bridges and American infrastructure. Musk supported Trump's comments that removing credits for American consumers to switch to electric vehicles would negatively impact the company but much more negatively impact Tesla's competitors. The Tesla CEO also supported Trump's stance on making it harder for Chinese automakers to compete for electric vehicle market share in the U.S. Trump's reversal of stance on autonomous vehicles could be the latest win for Musk and Tesla after the billionaire supported Trump in the election and has grown their friendship. You may not be a billionaire like Elon Musk, but you can uncover hidden gems in the stock market using our proprietary data and pattern recognition -- check out five stocks flying under the radar that deserve your attention. Why It's Important: While it is unknown if Trump will make it easier for self-driving vehicles to be on roadways and what may have caused his change of heart, the impact on Tesla should not be underestimated. Wedbush analyst Daniel Ives maintained an Outperform rating and $400 price target on Tesla while highlighting the impact of the reports of Trump's transition team making self-driving vehicles a priority in a new investor note. "This would be a huge step forward in easing U.S. rules for self-driving cars and be a significant tailwind for Tesla's autonomous and AI vision heading into 2025," Ives said of the Bloomberg report. "Musk's significant influence in the Trump White House is already having major influence and ultimately the golden path for Tesla around Cybercabs." Ives said a strategic alliance between Trump and Musk is "playing out in real time" and is bullish for Tesla. "We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House these key initiatives will now get fast-tracked." The analyst said Tesla can march to a market capitalization of $1.5 trillion to $2.0 trillion over the next 12 to 18 months thanks to the FSD and autonomous progress. "We have never viewed Tesla simply as a car company...instead we have always viewed Musk and Tesla as a leading disruptive technology global player." Musk "made a strategic and big bet on" Trump winning the election and the win could be known by Tesla bulls for years to come, Ives added. "Tesla and Musk are set to reap the benefits from a new friendlier regulatory era in the Beltway ahead." TSLA Price Action: Tesla stock is up 4.99% to $336.78 on Monday versus a 52-week trading range of $138.80 to $358.64. Tesla stock is up 38.1% year-to-date. The stock is up 36.4% since Election Day. Read Next: Tesla Owners Who Don't Like Musk Are Letting Bumper Stickers Do The Talking Photo: Courtesy Tesla Market News and Data brought to you by Benzinga APIs

Tesla Soars Over 5% In Overnight Trading As Trump Administration Reportedly Seeks To Ease FSD Norms - Alphabet (NASDAQ:GOOG), Baidu (NASDAQ:BIDU)

Tesla Inc TSLA is trading over 5% on Robinhood's overnight trading service after a report on Sunday, suggested that the upcoming regulatory framework might ease mandates for self-driving vehicles. What Happened: The transition team of President-elect Donald Trump has told advisors that it aims to make a framework for fully self-driving vehicles a priority for the Transportation Department, reported Bloomberg, citing people familiar with the matter. Tesla CEO Elon Musk recently secured a position to lead the newly created Department of Government Efficiency (DOGE) in the Trump administration, supported federal rules for autonomous vehicles in Tesla's third-quarter earnings call, saying he would use any role to push the government to allow autonomous vehicles to be used nationwide. National Highway Traffic Safety Administration allows automakers to deploy only 2,500 autonomous vehicles per year, while efforts to increase this number have repeatedly failed. See Also: Nvidia's Blackwell Chips Are Extra Toasty, Server Overheating Issues Impact Meta, Microsoft And Elon Musk's xAI Why It Matters: In October, Musk unveiled Tesla's long-awaited robotaxi, which aims to mass produce 'Cybercabs' by 2026. Investors and market analysts are considering robotaxi's success as a major factor for the company's valuation, while some investors remain skeptical about robotaxi's success in regulatory approval. In October, ARK Investment Management said that Tesla's driverless ride-hailing plans could unlock $11 trillion in revenue potential, exceeding the total addressable market that ride-hailing companies Uber Technologies Inc. and LYFT Inc. are targeting. The Future Fund Managing Partner Gary Black has repeatedly voiced skepticism about Tesla maintaining a monopoly in the unsupervised autonomy market, citing competition from Alphabet Inc GOOGLGOOG-backed Waymo, Baidu BIDU and Mobileye Global MBLY who has already received approval to deploy their autonomous vehicles. Price Action: Tesla is trading 5.69% higher at $339 on Robinhood's overnight trading service. The stock closed at $320.72 in a regular trading session on Friday, gaining 3.07% for the day. In after-hours trading, the stock edged up 0.0062%. Year to date, Tesla's stock has risen by 29.10%, according to data from Benzinga Pro. Read Next: IBM, Disney And Other Large Advertisers Return To Elon Musk's X After A Year-Long Boycott: 'We Super Appreciate' Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

77% Of Tesla's Stock Value Rides On Self-Driving

Federal deregulation of autonomous vehicles could pave the way for faster progress Tesla has always ridden on big dreams and even bigger promises. The automaker has a history of betting it all on risky situations -- and generally, those moves have paid off. It's not only the lone successful automotive startup the world has seen in about a century, it's also worth more than $1 trillion these days. You can attribute that sky-high valuation on Tesla's biggest bet of all: autonomy. The automaker, which would rather be viewed as a AI and tech company that just happens to build cars, believes it can solve self-driving with its Full Self-Driving software and its upcoming Robotaxi product. And investors believe that this risk could lead to a huge payday if it pays off. And if it doesn't? Well, that's potentially 77% of Tesla's value circling the drain, according to RBC Capital analyst Tom Narayan. "Robotaxis account for 44% of [Tesla's] valuation," explains Narayan, later continuing: "FSD accounts for another 33% of our valuation and we see private AVs becoming living rooms, bedrooms and offices on wheels. These will also be purpose-built vehicles." Narayan says that the firm believes that FSD will ultimately reach the SAE designation of Level 4, which means that vehicles with FSD can drive themselves in certain conditions and would not require a human to take over at any point in time while the vehicle is driving in its Operational Design Domain. Think driverless taxis (like the Cybercab) operating in select cities. Tesla CEO Elon Musk previously claimed that Tesla would reach in 2023. The problem? Tesla isn't remotely close to the finish line. Musk claims that Tesla will have its Robotaxi -- which, mind you, comes without a steering wheel or pedals -- in production before 2027. For those counting, that leaves just 409 days to solve self-driving and iron out production of a next-generation vehicle. Outside of its We, Robot Robotaxi event at the Warner Brothers studio, Tesla has yet to show significant progress in real-world self-driving headway. But it does claim that it has been testing out autonomous rides for employees in California, though, and officials in Palo Alto are already knocking at Tesla's door to be one of the first cities where the automaker deploys its Robotaxis. That is, of course, assuming that Tesla receives regulatory approval for these trials. Elon Musk's new bestie (and president-elect), Donald Trump, has recently signaled interest in a federal Autonomous Vehicle Framework that would essentially prioritize deregulating AVs and pave the path for faster deployment across the U.S. Whether or not Tesla has the technical prowess to back it up is leaving some room for doubt, though. From Narayan's note: While we do see federal deregulation on AVs as a positive for Tesla, the company still has a ways to go to prove that its camera based system will ultimately work with limited interventions. As we understand it, FSD's next version (13.0) is tracking at ~10k miles before intervention, compared to Waymo's 17k level. Moreover, in states like California, getting robotaxi licenses might mandate using lidar systems. It is unclear to us if creating a federal AV policy framework would supersede. If the stars align and Tesla delivers on its promises (in part, thanks to Musk's political manuevering), its stock could go to the moon. This is huge for investors, especially those who had many unanswered questions following its lackluster Robotaxi presentation last month. But there's significant competition from companies like Cruise and Waymo, both of which have been real-world testing for years with dedicated teams and more robust hardware stacks. It's an uphill battle for Tesla, which has proven critics wrong before -- but never with this much on the line.

Why Tesla Stock Popped 7% on Monday Morning | The Motley Fool

Tesla (TSLA 5.64%) stock raced ahead by 7% through 10 a.m. ET Monday after Bloomberg reported that the incoming Trump administration wants to enact "a federal framework for fully self-driving vehicles." CEO Elon Musk has repeatedly said that he considers artificial intelligence (AI) and autonomous driving technology the keys to Tesla's future growth. Investors are hoping that with government backing, this will turn into a winning bet. Tesla builds electric cars. Problem is, profit margins on electric cars have fallen as early adopters have made their purchases and demand elsewhere in the market has dwindled. Tesla's gross margin has fallen from better than 25% in 2021 and 2022 (roughly twice what Ford and GM were earning) to just over 18% in the past 12 months, according to data from S&P Global Market Intelligence. And with competition mounting as more and more companies field electric alternatives, it's unlikely Tesla's EV business alone will regain its former profit margins. If Tesla succeeds in building an autonomous cars business, however, that would give the company a path to greater profitability, through software licensing and rental fees on fleets of new Cybercabs and Robovans. Elon Musk was a major backer of Trump's presidential campaign, and investors seem to be assuming that support will translate into government regulation that favors Tesla. Musk has advocated for federal regulation in the past, rather than the current patchwork of state-by-state rules, and a framework for autonomous car operation would give Tesla a roadmap to follow at the same time that it imposes regulatory burdens on the industry. Larger, better-capitalized companies like Tesla would likely have an advantage over smaller start-ups in this scenario. It remains to be seen, however, what form regulation will take, whether from the National Highway Traffic Safety Administration (over which Trump would have greater control) or laws passed by Congress (where the outcome would be less certain). For now, investors are best advised to wait and see what comes of this new policy proposal.