Donald Trump's reported plan to ease regulations for self-driving cars has sent shockwaves through the stock market. Uber (UBER) and Lyft (LYFT) stocks took a significant hit on Monday, while Tesla (TSLA) saw a boost. This development is adding fuel to investor concerns about Tesla's potential challenge to Uber's ride-hailing market dominance.

Trump's Move Shakes Up Ride-Hailing Stocks

Impact on Uber Stock

Uber stock broke below its 200-day moving average and reached a two-month low. In recent trading, it is down more than 6% at 68.68. The company's Q3 earnings report showed lower-than-expected bookings, which led to a 9% slump in its shares. Uber is not sitting idle, though. It has pitched its app as a platform for autonomous vehicle developers to find demand for their products and has partnerships with Google's Waymo, GM's Cruise, and Avride.However, Tesla's potential autonomous challenger to Uber's rides business has weighed on Uber's shares. Tesla Chief Executive Elon Musk has previously voiced support for national self-driving rules and has teased an announcement about a robotaxi network. While Tesla revealed its autonomous CyberCab at an Oct. 10 event and Musk expects to roll out ride-hailing in California and Texas next year, California's regulatory approval process is longer.

Impact on Lyft Stock

Shares of Lyft have also fallen more than 5% to 17.16 in recent action. The company earlier this month announced its own AV-focused partnerships, including with Mobileye (MBLY). But with Tesla's focus on building its own ride-hail network, Lyft faces increased competition.

Tesla's Role in the Market

Tesla stock is up more than 8% at 346.76. Musk's vision of a robotaxi network could be a game-changer. He told analysts last month that Tesla "expect(s) to roll out ride-hailing in California and Texas next year to the public." A national framework for self-driving could clear a big hurdle for Musk's vision. Additionally, a potential autonomous challenger from Tesla to Uber's rides business has investors on edge.Although Tesla still has technological hurdles to prove its robotaxi service can be viable, a Trump White House may help clear some regulatory hurdles. The Bloomberg report said that the Transportation Department could issue rules to ease the path toward self-driving adoption, and a Congressional measure in "early stages" could also create federal rules.In conclusion, Trump's self-driving car plan is having a significant impact on the ride-hailing industry and the stocks of Uber, Lyft, and Tesla. The competition between these companies is heating up, and investors will be closely watching how the situation unfolds.