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Tesla (NASDAQ:TSLA) rose more than 5% on Friday after U.S. regulators eased rules tied to autonomous vehicles, a move seen as favorable to the electric vehicle maker's self-driving ambitions.
The National Highway Traffic Safety Administration said it would maintain current safety incident reporting requirements for driver assistance systems, but promised to streamline the process. The agency will also expand its Automated Vehicle Exemption Program to allow domestically produced vehicles, including those from Tesla, to apply for safety standard exemptions.
Previously, the program primarily supported foreign-made vehicles for research or demonstration purposes.
The changes come as Tesla seeks regulatory clearance to deploy its Cybercab robotaxi fleet in Texas this summer. According to reports, the company is requesting exemptions to operate non-standard vehicles on public roads.
Transportation Secretary Sean Duffy said the updated rules aim to reduce bureaucratic delays and strengthen America's edge against China in the autonomous vehicle race.
The policy shift follows a challenging year for Tesla. The company's first-quarter earnings plunged 71% amid growing competition from Chinese automakers and controversy over CEO Elon Musk's role in the Trump administration.
This article first appeared on GuruFocus.