A report shared over the weekend claims that the transition team for President-elect Donald Trump is looking to create a federal framework for self-driving vehicles—and to make the sector a top priority in the upcoming term.
Trump’s transition team is looking to create federal rules for the rollout of autonomous vehicles, according to people familiar with the matter in a report from Bloomberg on Sunday. The news comes as Tesla and others are developing and deploying autonomous vehicles, and as Elon Musk has officially been named a co-leader of the Department of Government Efficiency (DOGE) for the Trump administration.
The sources also said that autonomy laws would be a major priority for the U.S. Department of Transportation after past efforts to increase the number of available permits for self-driving vehicles have been thwarted. According to additional people familiar with the matter who spoke under the condition of anonymity, the Trump team is also actively looking to find policy leaders to help develop the guidelines.
Currently, the National Highway Traffic Safety Administration (NHTSA) lets manufacturers deploy as many as 2,500 self-driving vehicles per year under a granted exemption, though attempts to increase allowed units to 100,000 have been unsuccessful. Self-driving vehicles without a steering wheel or accelerator pedals—such as Tesla’s recently unveiled Cybercab—aren’t currently permitted to be deployed en masse, but many think that such a move from Trump could accelerate the deployment of the technology.
Tesla, Waymo, and others developing self-driving vehicles
Currently, Tesla owners can purchase and use the company’s Supervised Full Self-Driving (FSD) to access semi-autonomous driving, though drivers are expected to be attentive and prepared to retake control of the vehicle at any moment. Tesla also unveiled its two-seat Cybercab last month, expected to be based on FSD and to enter production in 2026.
Below you can see our first ride in the Cybercab from the We, Robot unveiling event.
🎥: Our FULL first ride in the @Tesla Cybercab pic.twitter.com/6gR7OgKRCz— TESLARATI (@Teslarati) October 11, 2024
While Tesla doesn’t currently operate a paid ride-hailing service like the Alphabet-owned Waymo, or others working toward this model, the company has teased an app based on an FSD ride-hailing service in the past. Additionally, many within the Tesla community claim that FSD will be more scalable than its competitors, due in part to its training of an AI neural network using millions of clips of real-time driving footage from FSD Supervised users.
Other companies such as Amazon-owned Zoox, General Motors-run (GM-run) Cruise, and still many others have also deployed driverless ride-hailing services to varying degrees of success. While California has been one of a few states where self-driving services have been able to start deployment in limited quantities, autonomous driving has also come under fire from regulators and authorities following a few cases of accidents and traffic violations.
Nonetheless, the development of a federal framework for autonomous vehicles could affect how this happens on a national level—and it will likely come to the benefit of Musk and Tesla, especially given the CEO’s closeness with Trump.
Tesla’s next step of dominance comes from Trump EV tax credit policy: Wedbush
Elon Musk and Trump’s Department of Government Efficiency
Musk will lead Trump’s newly created DOGE division in tandem with Vivek Ramaswamy, with the department aiming to “dismantle government bureaucracy” and cut down on government spending. The Tesla CEO initially endorsed Trump in July during his presidential campaign, later forming the political action committee (PAC) America PAC in support of the now-President-elect.
In addition to the financial support, Musk was a vocal backer of Trump’s campaign at rallies and in online media appearances, saying last month that Trump “must win to preserve the Constitution and democracy.” Many have also debated whether Trump’s removal of the federal $7,500 electric vehicle (EV) tax credit would be bad for Tesla and other EV makers, though Musk has said that it will likely only benefit Tesla.
The recent support for Trump also follows an ongoing set of feuds Musk has had with President Joe Biden during his presidency, as was sparked by Tesla not being invited to the administration’s EV summit, and by Biden claiming that GM had been the leader in EV deployment. Musk said in July that Biden is “utterly controlled” by the United Automotive Workers (UAW), following multiple criticisms of the union in the past.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Former Tesla executive warns of delays to European ADAS regulations
Elon Musk
Musk bankers looking to trim xAI debt after SpaceX merger: report
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.
Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.
The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.
The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.
Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”
That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.
X merged with xAI last March, which brought the valuation to $45 billion, including the debt.
SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:
“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”
The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.
News
Tesla pushes Full Self-Driving outright purchasing option back in one market
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.
The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.
NEWS: Tesla is ending the option to buy FSD as a one-time outright purchase in Australia on March 31, 2026.
It still ends on Feb 14th in North America. https://t.co/qZBOztExVT pic.twitter.com/wmKRZPTf3r
— Sawyer Merritt (@SawyerMerritt) February 13, 2026
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.
The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.
Tesla hits major milestone with Full Self-Driving subscriptions
However, Tesla just launched it just last year in Australia.
Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.
The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.
In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.
The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.
Elon Musk
Starlink terminals smuggled into Iran amid protest crackdown: report
Roughly 6,000 units were delivered following January’s unrest.
The United States quietly moved thousands of Starlink terminals into Iran after authorities imposed internet shutdowns as part of its crackdown on protests, as per information shared by U.S. officials to The Wall Street Journal.
Roughly 6,000 units were delivered following January’s unrest, marking the first known instance of Washington directly supplying the satellite systems inside the country.
Iran’s government significantly restricted online access as demonstrations spread across the country earlier this year. In response, the U.S. purchased nearly 7,000 Starlink terminals in recent months, with most acquisitions occurring in January. Officials stated that funding was reallocated from other internet access initiatives to support the satellite deployment.
President Donald Trump was aware of the effort, though it remains unclear whether he personally authorized it. The White House has not issued a comment about the matter publicly.
Possession of a Starlink terminal is illegal under Iranian law and can result in significant prison time. Despite this, the WSJ estimated that tens of thousands of residents still rely on the satellite service to bypass state controls. Authorities have reportedly conducted inspections of private homes and rooftops to locate unauthorized equipment.
Earlier this year, Trump and Elon Musk discussed maintaining Starlink access for Iranians during the unrest. Tehran has repeatedly accused Washington of encouraging dissent, though U.S. officials have mostly denied the allegations.
The decision to prioritize Starlink sparked internal debate within U.S. agencies. Some officials argued that shifting resources away from Virtual Private Networks (VPNs) could weaken broader internet access efforts. VPNs had previously played a major role in keeping Iranians connected during earlier protest waves, though VPNs are not effective when the actual internet gets cut.
According to State Department figures, about 30 million Iranians used U.S.-funded VPN services during demonstrations in 2022. During a near-total blackout in June 2025, roughly one-fifth of users were still able to access limited connectivity through VPN tools.
Critics have argued that satellite access without VPN protection may expose users to geolocation risks. After funds were redirected to acquire Starlink equipment, support reportedly lapsed for two of five VPN providers operating in Iran.
A State Department official has stated that the U.S. continues to back multiple technologies, including VPNs alongside Starlink, to sustain people’s internet access amidst the government’s shutdowns.
Musk bankers looking to trim xAI debt after SpaceX merger: report
SpaceX launches Crew-12 on Falcon 9, lands first booster at new LZ-40 pad
