Tesla's shares have risen following news that Elon Musk's initiative to deregulate autonomous vehicles could soon be realized with the change in the White House administration next quarter.
Federal Policy Changes
The Trump transition team is allegedly working on a national policy framework for autonomous vehicles that would allow them on public roads much more quickly and in greater numbers than what current state laws permit. This initiative might be led by Emil Michael, a former Uber executive, who is a candidate for the position of Transportation Secretary. The new rules from NHTSA are expected to be included in federal legislation, which would feature a bipartisan bill calling on Congress to relax regulations and promote the use of fully autonomous vehicles.
Musk's Vision
During Tesla's Q3 earnings call, Elon Musk shared his reasoning for supporting the Trump campaign and taking on a significant role in the newly formed Department of Government Efficiency (DOGE).
He stated that there should be a national approval process for autonomous vehicles, explaining that this is how the FMVSS has functioned. "Federal Motor Vehicle regulations are federal," he said. "We need a national approval system. There’s a department of government efficiency, and I’ll do my best to assist in making that a reality. This is for everyone, not just Tesla. Some aspects in the U.S. are handled state by state, like insurance, and it’s really tough to manage that across all 50 states. A streamlined approval process for autonomy is necessary."
The Robotaxi Innovation
The Robotaxi is an entirely autonomous electric vehicle designed for two passengers, lacking pedals or a steering wheel. It can travel about 200 miles on a single charge, however, it cannot be recharged at home using a Tesla wall connector or at a Supercharger, as it is the first Tesla model to feature induction charging capabilities.
Tesla has chosen not to pursue a more traditional $25,000 electric car, known as the Model 2, instead opting to stake its future on affordable autonomous vehicles like the Robotaxi. If Musk's efforts to push for deregulation succeed and become law, this strategy could prove to be a wise investment for the company.
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