Tesla stock gains as Trump admin looks to support full self-driving framework

Investing.comNov 18, 2024 5:53 AM

Investing.com -- Tesla Inc (NASDAQ:TSLA) shares rose over 4% in after-hours trading on Robinhood (NASDAQ:HOOD) Sunday evening following reports from Bloomberg that the upcoming Trump administration will establish a federal framework for fully self-driving vehicles and make it a top priority for the Department of Transportation.

The development is seen as a major boon for Tesla, which has been leading the charge for fully autonomous driving. CEO Elon Musk has been a major supporter of President-elect Donald Trump and is now considered in his inner circle. Musk and Vivek Ramaswamy are heading up the recently announced Department of Government Efficiency (DOGE), which was tasked with cutting government spending waste.

The Trump administration is seeking leaders to develop the department’s framework for regulating self-driving vehicles. Current federal rules significantly restrict cars without foot pedals and steering wheels. Former Uber (NYSE:UBER) executive Emil Michael is said to be one of the candidates under consideration to lead the department. Republican Representatives Sam Graves and Garrett Graves are also said to have been considered.

Telsa recently announced plans to launch a Robotaxi service in 2026. Current regulations could limit the potential service. However, Musk’s influence in the new Trump administration could lay the groundwork for mass deployment and success of the new Tesla service.

Tesla shares have been up 28% since Trump won the election on November 5th.

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