With Trump's election as President of the United States, his administration is expected to attempt to relax regulations on autonomous vehicles, a news that led to Tesla's stock price rising more than 5% on Monday.
Tesla CEO Elon Musk has been actively pushing for the launch of its "robotaxi" service to compete with rivals like Waymo, a subsidiary of Google's parent company Alphabet. The market is filled with anticipation regarding the Trump administration's intention to lower regulatory barriers for autonomous vehicles, causing investors to feel excited and buy Tesla stocks.
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According to reports, Trump's transition team is planning to form new members for the Department of Transportation, hoping to establish new policies for the regulatory framework of autonomous vehicles. However, it remains uncertain whether the appointees by Trump can fully lift these restrictions, as any significant policy changes would require bipartisan support in Congress.
Nevertheless, Musk's close relationship with Trump undoubtedly provides favorable conditions for him to advocate for looser regulations. Currently, Waymo has secured a position in the autonomous taxi sector, while General Motors' Cruise has seen its momentum significantly weaken following a major accident. To succeed in this competitive market, Musk has showcased a prototype of his steering wheel-less "Cybercab," attempting to demonstrate Tesla's cutting-edge technology in autonomous driving to the public.
However, safety concerns remain a significant obstacle in advancing autonomous driving technology. For instance, the National Highway Traffic Safety Administration (NHTSA) has set a cap on the number of deployed autonomous vehicles, with a proposal for only 2,500 vehicles currently stalled in Congress. This means that the Trump administration must tread carefully while advocating for policy support for Musk, especially concerning safety issues and public acceptance.
Overall, the future policies of the Trump administration will have a profound impact on the autonomous driving industry, particularly as Tesla's market prospects are closely tied to these developments.
Key Points:
🚗 The Trump administration is expected to relax regulations on autonomous vehicles, resulting in a rise in Tesla's stock price.
🤝 Tesla CEO Musk's close relationship with Trump increases the chances of securing policy support.
⚖️ The promotion of autonomous driving technology faces challenges related to safety concerns and congressional support.
