Shares of Tesla Inc are higher by 8% in pre-market trade on November 18, riding on reports that President-elect Donald Trump may focus on a Federal framework for self-driving vehicles, potentially leading to mass adoption of self-driving cars.
Earlier, Bloomberg News reported citing people familiar with the development that Trump’s transition team may consider a framework for full self-drive (FSD) one of the Transportation Department’s priorities. If this materialises, then Tesla CEO and billionaire Elon Musk is expected to be a major beneficiary of the proposed regulation.
Musk's America PAC (Political Action Committee) has reportedly spent $200 million to help elect Donald Trump for his second term of Presidency, The Guardian reported earlier this month, citing people familiar with the development, with a significant funding coming from Elon Musk.
Tesla had recently unveiled Cybercab - prototype of the Tesla Robotaxi - a fully autonomous electric vehicle with no pedals or steering wheel, and Tesla's first EV with induction charging. Cybercab is slated to go into production in 2026 and is priced below $30,000.
EV company Tesla is in direct competition with Google’s parent company Alphabet, which was channelled large investments into its autonomous self-driving startup Waymo.
Meanwhile, Reuters citing sources said that the Trump transition team is considering former Uber executive and Trump donor - Emil Michael - along with three Republican congressmen to head the US Transport Department. Michael is an investor in Musk’s rocket company SpaceX, as per Michael’s website.
Michael stepped down from Uber in 2017 and later started an investment company. During the Obama administration, Michael served as a White House fellow, working with the Department of Defense as a special assistant to Robert Gates.
The Department of Transportation oversees the National Highway Traffic Safety Administration (NHTSA), which regulates automakers such as Musk's Tesla. NHTSA permits only 2,500 self-driving vehicles per year under an exemption, and efforts to increase this number to up to 100,000 have failed repeatedly.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
