Shares in troubled EV maker Tesla (TSLA) revved up higher today after it received a rare bit of good news on the future of self-driving cars in the U.S.
Stay Ahead of the Market:
Easier to Deploy
It seems President Donald Trump has listened to his buddy, Tesla chief executive Elon Musk, and made changes to federal rules on autonomous vehicles to make it easier to deploy the vehicles and even loosen requirements around accidents.
The National Highway Traffic Safety Administration (NHTSA) said it will continue its requirement that vehicles equipped with certain advanced driver assistance systems or self-driving systems report safety incidents but it said will streamline reporting requirements.
The NHTSA will also expand its Automated Vehicle Exemption Program (AVEP) to include domestically produced vehicles.
The program previously allowed only certain foreign vehicles to be deployed on U.S. roads without fully complying with NHTSA’s Federal Motor Vehicle Safety Standards for research or demonstration purposes. However, vehicles built in America can also now submit requests for similar exceptions.
Challenge China
U.S. transportation secretary Sean Duffy said the new framework will slash red tape to spur innovation and challenge China. “We are in a race with them to out-innovate and the stakes couldn’t be higher,” he said.
Musk had called for these changes in part to help the rollout of his fleet of Cybercabs in Texas this June. According to the Financial Times, to win approval Tesla needs an exemption from the agency to operate a non-standard car on American roads.
Tesla stock has swerved off track in 2025 battered by rising Chinese competition, concerns over tariffs and the reputational hit to the company given Musk’s close relationship with the colourful Trump administration.
Following a woeful set of first quarter results when profits slumped by 71%, Musk has promised to refocus on his day job and spend less time working for Trump as head of the controversial Department of Government Efficiency or DOGE.
An easing in self-driving rules could be a good way to kickstart those Tesla batteries.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 17 Buy, 11 Hold and 12 Sell ratings. Its highest price target is $465. TSLA stock’s consensus price target is $284.74 implying an 9.72% upside.