Tesla Shares Surge on Reports of Federal Autonomous Vehicle Regulations

Tesla shares jumped over 5% Monday following a Bloomberg report that President-elect Donald Trump’s transition team plans to establish federal regulations for autonomous vehicles.

The announcement comes as Tesla CEO Elon Musk takes on a role as co-head of Trump’s government efficiency department. According to sources, Trump’s team is seeking leaders for the transportation department to develop a unified regulatory framework, potentially replacing the current state-by-state approval process Musk has criticized as “incredibly painful.”

Such regulations could accelerate Tesla’s self-driving vehicle initiatives, including its recently unveiled “Cybercab” robotaxi, slated for production in 2026. However, analysts caution that Tesla’s Full Self-Driving (FSD) software, still requiring driver supervision and under federal investigation, remains a significant hurdle.

Tesla’s shares have surged nearly 28% since Trump’s election victory, pushing its market valuation past $1 trillion amid hopes Musk’s White House connections could ease self-driving regulations. The stock now trades at valuations surpassing legacy automakers and even tech giants like Apple and Nvidia.

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• Tesla’s Stock Surge in 2024

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