Tesla Stocks rose on Monday following a report that President-elect Donald Trump's transition team plans to make a federal framework to control self-driving vehicles a top priority for the U.S. Department of Transportation.
Tesla shares rose nearly 7% in midday trading following the discharge of the Bloomberg News report, which cited unnamed sources acquainted with the matter.
CNBC was unable to independently confirm the report and has reached out to the Trump team and the National Highway Traffic Safety Administration, a division of the Transportation Department tasked with overseeing autonomous driving technologies, for comment.
Musk has been a central figure within the business world pushing for Trump's return to the White House ahead of this month's election. The tech billionaire is now set to profit from the close relationship he has developed with the Republican politician, who previously served his first term as president between 2017 and 2021.
Last week, Trump selected Musk and former Republican presidential candidate Vivek Ramaswamy to go the newly created Department of Government Efficiency – or “DOGE” for brief. Expenditure.
A federal framework to control self-driving vehicles could be a significant boon for Musk's Tesla, which has been promising fully self-driving vehicles for several years but has not yet released a automotive that may drive autonomously and not using a human behind the wheel.
Tesla's long-term vision is to construct a fleet of so-called robotaxis, autonomous vehicles that may drive people around without human supervision.
Last month, Musk unveiled Tesla's long-awaited robotaxi – an idea automotive called “Cybercab,” a $30,000 two-seater vehicle with no steering wheels or pedals.
Tesla has already been beaten within the robotaxi race by Google's Waymo, which is among the many few corporations which have successfully introduced self-driving cars on public roads.
During an event introducing Tesla's Cybercab and “Robovan” vehicles, Musk said he expects Tesla to introduce “unsupervised” full self-driving technology in its Model 3 and electric vehicles in Texas and California next yr The company's Model Y will probably be put into operation.
Full Self-Driving, or FSD for brief, is Tesla's premium driver assistance system, which is currently available in a “monitored” version for Tesla electric vehicles. FSD currently requires a human driver on the wheel, able to steer or brake at any time.
According to Bloomberg, Trump's transition team is reportedly in search of policy leaders for the Department of Transportation to develop a federal regulatory framework for self-driving vehicles.
They include Emil Michael, a former Uber executive, and Republican Reps. Sam Graves of Missouri and Garret Graves of Louisiana, who usually are not related, Bloomberg reported.
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