Tesla stock (NASDAQ: TSLA) is up big on Monday morning on Wall Street after a bullish report that President-elect Donald Trump would have a federal framework for self-driving vehicles.
Many bulls have said that Tesla would benefit greatly from a Trump presidency. After the stock soared following Trump’s successful election campaign, his transition team is taking shape, and it seems as if it will serve more benefits for automakers involved in autonomy, including Tesla.
Autonomy currently operates on a state-to-state basis, with some states having stricter guidelines than others. However, a Bloomberg report from Sunday evening said that the National Highway Traffic Safety Administration (NHTSA) could be filled by policymakers nominated by President-elect Trump when he enters the White House.
These new policymakers would be responsible for creating new self-driving rules at a federal level, perhaps expediting the process.
Tesla has been a major player in the autonomy race, not yet operating a public driverless robotaxi platform like Waymo or Cruise, but establishing itself as the driving force in developing self-driving tech elsewhere.
Tesla’s Full Self-Driving platform is still being developed, but it has become extremely robust, and CEO Elon Musk believes the company could have autonomous vehicles in California or Texas next year.
The company is one of the main beneficiaries of these new self-driving rules that Trump’s NHTSA could roll out. Because of Musk’s tight relationship with the President-elect, Tesla could work with the White House on fair autonomy rules that focus in on safety and appropriate levels of regulation.
Bulls are salivating at the prospect of more efficient autonomy rules for Tesla, as many believe the AI side of the company is worth up to $1 trillion in value alone. That would essentially double Tesla’s valuation currently, and some bulls think the rules could be fast-tracked with Trump in the White House, meaning the surge could come sooner than later.
Dan Ives of Wedbush said:
“This would be a huge step forward in easing US rules for self driving cars and be a significant tailwind for Tesla’s autonomous and AI vision heading into 2025. We estimate the AI and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era.”
Shares are up over 8 percent at 11 a.m. on the East Coast.
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