Tesla’s share value experienced a significant uptick of over 7 per cent during morning trading on Wall Street, following reports that Donald Trump’s transition team is contemplating a relaxation of self-driving vehicle regulations.
The president-elect’s advisory team is prioritising the establishment of a federal framework for autonomous vehicle regulation within the US Department of Transportation, moving away from the current state-by-state approval system. This strategic shift could potentially accelerate the commercialisation of self-driving technologies, particularly benefiting Tesla’s CEO Elon Musk, a prominent Trump campaign supporter.
Musk, who has been appointed co-head of the new government efficiency department, has previously expressed frustration with the existing state-level approval process, describing it as “incredibly painful”. The Tesla chief’s vision includes a future where all Tesla vehicles operate autonomously, exemplified by the recent unveiling of the steering wheel-free “Cybercab” robotaxi, scheduled for production in 2026.
The market response has been notably positive, with Tesla shares closing at $338.74 in New York, marking a $18.02 (5.6 per cent) increase. The company’s market performance since Trump’s November 5 election victory has been remarkable, with shares rising 28 per cent and pushing the company beyond a $1 trillion market valuation.
Industry analyst Mamta Valechha from Quilter Cheviot suggests that a unified federal regulation could expedite Tesla’s Full Self-Driving (FSD) testing programme. However, the technology remains under scrutiny following four reported collisions involving Tesla vehicles equipped with FSD software, including a fatal crash in 2023.
The appointment of the next US Department of Transportation head will be crucial in shaping future autonomous vehicle regulations. Emil Michael, a former Uber executive and current investor in Musk’s SpaceX, is currently considered the leading candidate for the position.
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