Tesla stock surged Monday thanks to rumblings over the weekend that the future Trump administration will adopt a federal framework for self-driving cars.
Shares of the electric vehicle company led by Elon Musk, who has become a close ally of President-elect Donald Trump, jumped more than 8 percent in early morning trading.
Bloomberg first reported the news that members of the Trump transition team have told advisers that they plan to make autonomous vehicles one of the Transportation Department’s priorities.
The Trump team is also reportedly searching for policy minds to think up a way to regulate self-driving vehicles.
During an earnings call last month, Musk said he believes the future is automated electric vehicles.
‘Non-autonomous gasoline vehicles in the future will be like riding a horse and using a flip phone,’ he said.
This comes after Musk has fully embraced Trump by donating tens of millions to his campaign, speaking enthusiastically at his rallies and now leading a proposed government agency aiming to cut trillions in federal spending.
Musk, who owns close to 13 percent of Tesla’s outstanding shares, will certainly benefit from the incoming administration’s new stance on self-driving.
Elon Musk just notched a major win for Tesla as it’s been reported that Donald Trump advisers want the Transportation Department to adopt rules for self-driving cars
Musk got $15 billion richer immediately after Trump’s historic election victory thanks to Tesla’s stock rising, making him worth well over $300 billion, according to the Bloomberg Billionaires Index.
Tesla stock has appreciated by nearly 30 percent since Trump defeated Vice President Kamala Harris.
As it stands, the federal government has put up significant red tape for companies like Tesla who want to sell vehicles without steering wheels or foot pedals at an industrial scale.
All of Tesla’s vehicles still have steering wheels and foot pedals, but come with the ability to turn on autopilot, which allows the car to steer for you within lanes.
Most newer Teslas come with full self driving, which is more autonomous than autopilot. On this mode, the car can merge onto highways, change lanes and park automatically.
However, the system hasn’t been perfected yet, and there have been several serious reported mishaps.
One man claimed his Tesla didn’t slow down when there was a train crossing the road, forcing him to swerve at the last second to save himself.
In July, a Tesla Model S that was on full self driving mode crashed into a motorcyclist in Seattle, killing him.
Any changes to how autonomous vehicles would be regulated would likely involve Trump’s Transportation Department issuing new rules through the National Highway Traffic Safety Administration (NHTSA).
A Tesla driver claimed his vehicle was in Full Self-Driving (FSD) mode but didn’t slow down as it approached a train crossing the road (Pictured: The Tesla vehicle after the near-collision)
Read More
Where Elon Musk and Donald Trump's alliance could fall apart
The NHTSA is responsible for issuing the Federal Motor Vehicle Safety Standards, which for the most part dictate what is and isn’t safe for cars.
It isn’t clear if the Trump team is looking to alter those standards to make it easier for companies to deploy self-driving cars.
Either way, an act of Congress would be necessary in order to pave the way for mass adoption of autonomous vehicles. There is a bipartisan piece of legislation that’s being discussed by people involved that would create federal rules on this front, Bloomberg reported.
Emil Michael, a former Uber executive, is reportedly one of the top contenders to become Transportation Secretary.
Republican Representatives Sam Graves of Missouri and Garret Graves of Louisiana are also being considered for the role, according to Bloomberg.
In October, Musk unveiled Tesla’s driverless Robotaxi after years of promising customers this very thing.
A concept image of Tesla’s future Robotaxi, which will have no steering wheel, pedals, or rear window. There will also only be enough room for two passengers
Musk also announced the Robovan, which will be able to fit 20 people or be converted to carry goods
The futuristic autonomous car has no steering wheel, pedals, or rear window and has just enough room for two passengers.
Launched at Tesla’s ‘We, Robot’ event, the all-electric vehicle will cost less than $30,000 and only 20 cents per mile to run.
Musk claimed the car, which owners will ideally be able to lease out to earn passive income, will enter production by 2026 and could be on the market before the end of 2027.
At that same event, Musk also introduced an autonomous delivery truck called the Robovan.
Like the taxi, the Robovan has no steering wheel or pedals.
It can seat up to 20 people or could be converted to carry goods, Musk said. However, he gave no details about production, timeline, or cost.