Tesla's stock rose more than 7% shortly after the market open Monday, extending their 28% advance since election day. Members of President-elect Donald Trump's transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department's priorities, according to people familiar with the matter.
If new rules enable cars without human controls, it will directly benefit Elon Musk, the Tesla chief executive officer and Trump mega-donor who's become a powerful fixture in the president-elect's inner circle. He's bet the future of the EV maker on self-driving technology and artificial intelligence.
Tesla's stock rose more than 7% shortly after the market open Monday, extending their 28% advance since election day. Shares of Uber and Lyft, who could face competition from Musk's long-planned robotaxi network, each fell more than 6% in intraday trading.
Current federal rules pose significant roadblocks for companies looking to deploy vehicles without steering wheels or foot pedals in large quantities, which Tesla plans to do. The Trump team is looking for policy leaders for the department to develop a framework to regulate self-driving vehicles, according to people familiar with the matter, who asked not to be named because they weren't authorized to speak publicly.
While the Transportation Department can issue rules through the National Highway Traffic Safety Administration that would make it easier to deploy autonomous vehicles, an act of Congress would clear the way for mass adoption of self-driving cars. A bipartisan legislative measure being discussed in early stages would create federal rules around AVs, two of the people said.
One candidate under consideration for Transportation secretary is Emil Michael, a former Uber executive, they said. The work is in its early stages and policy details have yet to be determined, they said.
