Trump Officials Reportedly Easing Rules For Self-Driving Cars As Elon Musk Pushes Robotaxis

Elon Musk’s super PAC spent around $200 million to secure a Trump-Vance victory in the US presidential election. Musk’s influence with top Trump officials to push for a more efficient government, fewer regulations, and greater adoption of technology could be positioning the billionaire’s companies—from electric vehicles to space exploration and social media—for an era of super growth.

Bloomberg reports Trump officials told advisors they’re planning to construct a federal framework for fully self-driving vehicles as one of the Transportation Department’s top priorities. The media outlet cited sources that were familiar with the plans. 

“This would be a huge step forward in easing US rules for self-driving cars and be a significant tailwind for Tesla’s autonomous and AI vision heading into 2025,” said Wedbush analyst Dan Ives, who was quoted by Market Watch.

Ives added, “Musk’s significant influence in the Trump White House is already having a major influence and ultimately the golden path for Tesla around Cybercabs and autonomous is now within reach with an emboldened Trump/Musk strategic alliance playing out in real-time and very in line with our thesis.” 

Cybercab is individualized point-to-point autonomous transport pic.twitter.com/So9vA5sw35

— Tesla AI (@Tesla_AI) October 29, 2024

Tesla shares are up 6.5% in premarket trading to around $341. As of Friday’s close, shares are up 29% on the year. Ives reiterated a $400 price target for America’s top EV company. 

Goldman’s Laiya Kamanga and Daniel Dickerson told clients this AM:

“Autonomous vehicle technology remains highly topical, with many investors and industry participants focused on the degree to which the latest AI technology will lead to a faster rate of AV deployments. With Waymo opening up its network this past week in LA, and Reuters reporting that Tesla CEO Elon Musk is looking to take a role in streamlining federal AV rules, AVs have remained top of mind. The bottom line is that Mark Delaney believes it’s an exciting time for the industry as more AVs are deployed, although he believes various factors are gating the rate of growth in the near term more so than federal regulations.”

Last Thursday, the final chapter of the EV price war was realized after reports suggested the Trump team will eliminate the $7,500 consumer tax credit next year. Tesla is the only EV company that can survive in a world without the tax credit. 

Furthermore, at the end of last week, Gwynne Shotwell, president of SpaceX, told investors that the company plans 400 Starship launches during Trump’s second term. 

Deregulation and the end of weaponization of federal agencies against Musk’s companies could supercharge his empire and ultimately thrust America into a new era of technological success, outperforming the communists in China.