Tesla Stock Rises on Report of Autonomous Vehicle Regulation under Trump Administration

Tesla shares rose nearly 9% during Monday’s trading session after media reports suggested that President-elect Donald Trump’s transition team plans to introduce federal regulations for autonomous vehicles.

This report comes just days after Trump appointed Tesla CEO Elon Musk as co-chair of the incoming administration’s governmental efficiency department.

Last month, Musk criticized the state-by-state approval process for self-driving vehicles, calling it “incredibly painful.” His remarks came just weeks after unveiling a two-seater robotaxi called the “Cybercab,” which lacks a steering wheel and pedals, slated for production in 2026.

According to sources familiar with the matter, Trump’s team is seeking political leaders for the Department of Transportation to develop a unified federal regulatory framework. Such a move could streamline the approval process, allowing Tesla to accelerate its Full Self-Driving (FSD) testing.

However, regulations are not the primary obstacle currently holding Tesla back. Instead, it’s the company’s FSD technology, which remains semi-autonomous and requires driver supervision.

Tesla’s FSD technology, in development for over four years, is also under investigation by the U.S. automotive safety agency following four reported crashes involving Tesla vehicles equipped with the software, including a fatal accident in 2023.

Trump’s election victory has propelled Tesla’s market valuation past $1 trillion, with its shares up nearly 28% since November 5th.