Tesla Rides High on New Self-Driving Regulations, Thanks to Musk's Trump Support
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Tesla's (TSLA, Financial) stock has risen further since reports indicated that Elon Musk's bold political alignment with former President Donald Trump is paying off, particularly in the realm of autonomous driving regulations. Musk, who has long been a vocal supporter of Trump, is now reaping the rewards of federal self-driving rules that favor Tesla's growth in the autonomous vehicle space.
Since this news broke, especially in light of new federal guidelines for self-driving technology that have recently been released, which many believe Musk himself caused, Tesla's stock has skyrocketed. The rules are expected to speed up the use of Automated Driving Systems (ADS), which is a win for Tesla because this company has spent a lot of money on it through the Full Self-Driving (FSD) program.
In the past, Musk has characterized his endorsement of Trump as the "bet of the century," expecting that more openness under Trump's presidency would benefit his companies, including Tesla. The new regulations, which pave the way for the easier use of autonomous vehicles on public roads, could well support that bet.
Although Tesla Inc.'s stock went up in the background of the announcement, analysts did not get carried away. Like all emerging technologies, there are various challenges, such as safety issues, legal frameworks, and competition from similar industries from other tech companies. But for now, Musk's bold move seems to be paying off, enhancing Tesla Company's position as a chief architect of future transport systems.
This article first appeared on GuruFocus.