Proactive Investors - Tesla Inc (NASDAQ:TSLA) shares gained over 7% ahead of Monday’s trading on a report president-elect Donald Trump was to prioritise creating a framework around self-driving cars.
Trump’s transition team has told advisors a federal framework around fully self-driving vehicles will be a priority for the Transportation Department, according to Bloomberg.
This could make it easier for manufacturers to obtain self-driving licenses across state lines, directly benefiting Trump ally Elon Musk.
Wedbush analyst Daniel Ives noted the framework would be a “huge step forward” in easing rules over self-driving technology and mark a “significant tailwind” for Tesla.
“Musk's significant influence in the Trump White House is already having a major influence,” Ives added.
Tesla’s artificial intelligence-trained cars are largely able to drive on their own already with human supervision and Musk’s company has planned to launch a self-driving taxi service in late 2025.
“The golden path for Tesla around Cybercabs and autonomous is now within reach with an emboldened Trump-Musk strategic alliance playing out,” Ives said.
Shares ticked up 7.3% to $344.02 in pre-market trading, adding to a near-28% gain since the November 5 election.