Tesla is in a good position to monetize a change in autonomous driving regulations, which was announced by Donald Trump's transition team. The upcoming administration wants to establish a federal framework for fully self-driving vehicles. This contrasts with current state-specific regulations that lead to fragmentation. Tesla shares jumped more than 8% in pre-market trading on the news.

 

Elon Musk's bet on Donald Trump appears to pay off, as he is on track to reap the benefits of his endorsement. Although the upcoming administration wants to repel the IRA EV incentives, a net positive for Tesla, the EV maker could get something way bigger in return. Bloomberg reports that Trump's transition team members have told advisers they want to fast-track a federal framework for autonomous vehicles.

 

The Trump administration appears to make autonomous driving a priority for the US Department of Transportation. The first step would be finding policy leaders for the department who would develop a framework to regulate self-driving vehicles. Trump's transition team also sees a bipartisan legislative measure being discussed to create federal rules around autonomous vehicles.