In This Story, Tesla (TSLA + 6.83%) stock witnessed a remarkable uptick early on Monday. It is reported that President-elect Donald Trump's team is set to grant a significant victory to key ally Elon Musk. This development has sparked considerable interest among investors and industry observers.What is 'The Big Lebotski' and its Impact on Shake Shack?
Bloomberg News reveals that members of Trump's transition team have expressed their intention to make a federal framework for fully autonomous vehicles a top priority for the incoming Department of Transportation. Currently, federal rules pose challenges for deploying vehicles like Tesla's advertised Cybercab, which lack steering wheels and pedals.This could prove to be a major advantage for Musk. He has consistently emphasized Trump's election win as a victory for the US and his own companies. In October, during an earnings call, he stated that national approval is crucial. He even proposed the creation of a Department of Government Efficiency (DOGE) to push for a national approach to regulating driverless vehicles.Although the federal government has previously explored national regulations for autonomous vehicles, guidance and standards issued by federal regulators have been limited. Currently, 19 states have laws allowing driverless vehicles to operate on public roads. Musk expects Tesla to obtain approval to launch rideshare services in California, Texas, and "some other states" in 2025, along with approval for a "fully autonomous" version of the company's driver-assist software. He believes that Tesla will likely succeed in California, where rivals like Google's Waymo and Amazon's Zoox have operations.Bloomberg reports that bipartisan legislation is being considered to establish federal rules for autonomous vehicles. Without legislation, the Transportation Department would need to issue rules through the National Highway Traffic Safety Administration to facilitate deployment. The agency currently permits companies to deploy up to 2,500 self-driving vehicles annually.Tesla stock surged nearly 6% in pre-market trading on Monday. Year-to-date, the shares have gained 29%, largely driven by a stock rally following Trump's election victory.Musk wields significant influence over the president-elect, although the extent of his influence remains unclear. Since Trump's victory, Musk has attended many meetings and meals, including those with foreign leaders and ambassadors. He has also requested that SpaceX employees be appointed as top government officials, including at the Department of Defense.Last week, Trump appointed Musk and former presidential candidate Vivek Ramaswamy to lead DOGE, an outside-of-government group aiming to cut approximately $2 trillion from the budget, which is about one-third of all federal spending.Musk is expected to play a crucial role in guiding the Trump administration's artificial intelligence initiatives, which will benefit X (META + 0.63%), Tesla, and xAI. He will also participate in discussions regarding tariffs on Chinese products. Trump's team plans to eliminate the $7,500 tax credit for electric vehicle purchases, which has benefited both Tesla and its rivals. However, Musk believes that Tesla will be less affected compared to other companies.Musk's SpaceX could also benefit from Trump's presidency. The CEO has expressed the need to change regulations to eliminate the need for companies to repeatedly obtain permits to launch rockets.Over the weekend, Trump appointed Musk's ally and Commissioner Brendan Carr to lead the Federal Communications Commission, which is likely to provide a boost to SpaceX's Starlink subsidiary.
