Tesla Stock Jumps After Trump Boosts Musk’s Robotaxi Hopes

It’s no secret that former president (now president-elect) Donald Trump’s Nov. 5 election victory is good news for Tesla head Elon Musk, with Musk having publicly endorsed Trump on various occasions and multiple platforms.

A great deal of speculation has recently circulated in comment sections and on analyst panels as to what exact benefits might emerge for Tesla, despite Trump being “expected to kill the existing $7,500 EV tax credit,” according to Investopedia.

Tesla Stock Jumps After Incoming Trump Administration Plans Federal Framework for Self-Driving EV Taxis

Now, as CNBC reported, Tesla’s fortunes appear to be on a bit of an upswing.

Following news that Trump’s transition team is planning to enact and prioritize a federal framework concerning the regulation of self-driving cars, Tesla shares shot up by around 6% in midday trade, per Yahoo! Finance. This uptick in Tesla stock prices followed a significant surge after confirmation of Trump’s victory in the election, with Tesla stock leaping by almost 43% since Nov. 5.

According to Quartz, Musk bet somewhat heavily on a Trump win in order to see his company’s “robotaxis” roll out. A prototype deemed the “Cybercab” was rolled out in early October, along with a much larger “Robovan,” which Musk claimed could accommodate about 20 people.

Speaking at the event, Musk mentioned that 20 Cybercab prototypes were on hand to be tested that evening and that his belief was that these self-driving vehicles would be safer and more convenient than human-driven alternatives.

“With autonomy, get your time back. This is a very big deal,” Musk said of the opportunities presented by his Cybercab, according to a separate Quartz report. “It’ll save lives, like a lot of lives, and prevent injuries.”

“I think we’ll see autonomous cars become 10 times safer than a human,” Musk added, reiterating a longstanding claim of his.

Tesla Competitors Google Waymo and Amazon Zoox Also Involved

The good news may not be entirely Tesla’s to hoard, however. Existing competitors in the autonomous driving space — such as Google’s Waymo and Amazon’s Zoox — have already begun operations in California, something Tesla has yet to do, per Quartz. Furthermore, 19 states already allow for self-driving cars and trucks to operate on public roads.

If Trump’s federal regulatory framework on the matter does indeed come to pass, that number is almost certain to rise steeply. Bloomberg quoted industry expert Grayson Brulte, founder of The Road to Autonomy (a data and analysis firm focused on self-driving tech), on the latest news.

“The companies want clarity on vehicles with no pedals and no steering wheel,” Brulte said. “There could be a fight over this, but if a federal framework is implemented, it could usher in the autonomy economy.

With Musk and fellow Trump ally and entrepreneur Vivek Ramaswamy having been tapped by the president-elect to lead the “Department of Government Efficiency” (DOGE), and given that Musk had earlier promised to use such a body to “push for a national approach to regulating driverless vehicles,” as Quartz outlined, the future of the autonomous driving sector appears a bit more certain.