Tesla’s (TSLA) CEO, Elon Musk, could benefit significantly if regulations for fully self-driving vehicles come into effect. According to an exclusive Bloomberg report, President-elect Donald Trump’s transition team members plan to create a federal framework for fully self-driving (FSD) vehicles. This initiative is expected to become a key focus for the Department of Transportation (DOT) under the new administration.
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To develop these regulations, the Trump team is reportedly searching for policy leaders to guide the creation of a regulatory framework for self-driving cars. Additionally, the report stated that there are already ongoing discussions about a bipartisan legislative measure to establish federal guidelines for autonomous vehicles.
FSD Regulations Could Benefit Musk
If such regulations are implemented, it could significantly benefit Elon Musk, who has proven to be a prominent supporter of Trump. This is because Tesla is looking at a future dominated by autonomous vehicles.
The existing federal rules present obstacles for companies aiming to deploy vehicles without traditional human controls, such as steering wheels and foot pedals, on a large scale. In fact, TSLA is working on developing such vehicles, and earlier this year, Musk announced that the EV giant intends to ramp up the production of its robotaxis by 2026.
TSLA Intends to Launch Its FSD Vehicle in China Next Year
Meanwhile, TSLA intends to launch its FSD vehicle in China in the first quarter of next year, depending on regulatory approval. As a result, the competitive landscape in China is heating up. In response to Tesla’s ambitious plans, domestic electric car manufacturers like Geely (GELYF) are actively promoting their advanced driving-assistance systems, highlighting features that can already navigate highways or even busy city streets.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells. Over the past year, TSLA has increased by more than 30%, and the average TSLA price target of $207.83 implies a downside potential of 35.2% from current levels.
