As the Trump administration seeks to approve a fully autonomous driving system, Tesla's stock rises

Tesla Inc. (NASDAQ: TSLA) saw a 4% increase in after-hours trading on Robinhood (NASDAQ: HOOD) Sunday evening, following reports from Bloomberg that the incoming Trump administration plans to prioritize creating a federal framework for fully autonomous vehicles through the Department of Transportation.

This news is seen as a significant boost for Tesla, which has been at the forefront of self-driving technology. CEO Elon Musk, a strong supporter of President-elect Donald Trump, is now considered to be within his inner circle. Musk, along with Vivek Ramaswamy, is leading the newly formed Department of Government Efficiency (DOGE), which is focused on reducing government wasteful spending.

The Trump administration is looking for leaders to help develop the framework to regulate self-driving cars. Current federal guidelines pose restrictions on vehicles that lack traditional features such as foot pedals and steering wheels. Former Uber executive Emil Michael is reportedly a candidate to lead the department, alongside Republican Representatives Sam Graves and Garrett Graves, who have also been considered.

Tesla recently revealed plans to launch a Robotaxi service by 2026, but existing regulations could limit its potential. However, Musk's growing influence within the new administration could help pave the way for widespread deployment and success of this service.

Since Trump’s election win on November 5th, Tesla’s stock has surged by 28%.

Paraphrasing text from "Investing" all rights reserved by the original author.