Team Trump Could Touch Off Stellar Day for Tesla in the U.S

Tesla stock surged early Monday on reports that President-elect Donald Trump’s transition team is mulling a federal framework for autonomous or self-driving vehicles. While that move appears to be a big step forward for the autonomous vehicle industry, it could also make self-driving technology more attractive to consumers.

Self Driving Regulations — Common Sense.

The way autonomous driving operates in the United States is dependent on getting approval on a state by state basis. But some states, including Texas and Florida, allow self-driving vehicles without any limitations, complicating the matter with the absence of a unified federal framework. Whatever the solution, comprehensive congressional legislation would probably be the best bet.

Sources speaking to Bloomberg say the Trump transition team is seeking to place policymakers working in the Transportation Department’s NHTSA into an office that can create a coherent framework for permitting the use of autonomous vehicles. It could also set standard regulations across states, which would make it easier for companies like Tesla to get their autonomous driving technologies out onto all the roads in the country.

Elon Musk’s Vision and the Challenges

Prominent Trump supporter Elon Musk has argued for a federal approach to regulating self-driving cars for years. Tesla has branded its system as ‘Full Self-Driving’ (FSD), but what’s actually on the road with is a Level 2 driver assist system. What that means is, while the system can help you drive, you still need human input.

In states like Texas and California, Musk has ambitions for Tesla to be ready for full self driving by mid 2025. But he has made similar predictions before for about a decade, promising full autonomy ‘this year’ or ‘next year.’ The fact of the matter is that at least every hundred and two hundred miles, safety critical interventions for Tesla’s FSD systems are still required and they need to be done much better before Tesla is going to offer real useful robotaxis.

Impact on the Industry

There is a good chance a federal framework for self-driving vehicles could change the industry. This helps not just Tesla (and by extension Waymo and Zoox), but other places that are developing autonomous driving technologies too.

Nelson’s company, Waymo, a subsidiary of Google’s parent Alphabet, has been aggressively adding robotaxi services in cities like San Francisco, Los Angeles and Phoenix. Cadder expects the company to grow even further in spreading to other cities in the autonomous driving space.

It’s not the only one, either: Zoox, owned by Amazon, has also been testing its robotaxis on public roads in Las Vegas and San Francisco. These tests could be accelerated by a national regulatory framework that would help these companies deploy their services more broadly and efficiently.

Market Reaction

He backed Tesla’s stock up almost 5 percent early Monday on Robinhood as investors searched for signs of a regulatory change that would help the company’s electric vehicle business thrive. It comes after Tesla’s stock surged 29 per cent in the previous week after Trump’s election. Even as prices reduced 0.2% last week, the overall picture is still on a positive note.

Other tech giants such as Google and Amazon saw slight increases throughout the night that signaled a broader appetite on the market for potential federal regulations on self-driving vehicles.

Tesla and Industry Future Prospects

Whether this is the turning point for Tesla and the autonomous vehicle industry, however, will depend on whether a federal framework for self-driving vehicles emerges. Here are some potential future scenarios and impacts:

1. Accelerated Development and Deployment: A clear regulatory framework could reduce the obstacles to moving self-driving technologies from development to deployment more quickly and across more parts of country. Having a clear set of guidelines that companies would be expected to follow would not only cut the uncertainty of the unknown, but also the costs of figuring out what is right and what is wrong at each state regulation.
2. Enhanced Public Trust: Not only might federal regulations improve the public’s level of trust in self-driving technology, they also might make it more likely the vehicles will be deployed safely. Government can help to reduce fears among consumers by forcing all autonomous vehicles to adhere to the strict safety standards.
3. Increased Competition: The autonomous vehicle market could become more crowded if more companies were able to come in, being a level playing field that would require a standardized regulatory environment. More advanced and cheap self driving solutions could emerge from this competition.
4. Economic Impact: An autonomous vehicle industry could have major economic benefits to grow. It would offer new sources of income from autonomous ridehailing and delivery services, and could create new jobs in technology development, manufacturing and maintenance.
5. Urban Mobility and Infrastructure: Self driving vehicles could change the way we think about urban mobility and infrastructure. There are the potential benefits of reduced traffic congestion, improved road safety and more efficient transportation system. Because autonomous vehicles don’t really operate in independent conditions, cities may have to modify their infrastructure accordingly, with dedicated lanes and smart traffic management system being just two examples.
6. Environmental Benefits: Electric autonomous vehicles like Tesla’s, such as autonomous vehicles, could be an environmental sustainable. If self-driving cars are optimized in driving patterns and idling time, then emissions and fuel efficiency could both be improved.

Challenges and Considerations

While the prospects are promising, several challenges and considerations need to be addressed:

1. Safety and Reliability: Self driving is top priority but staying safe and reliable is an issue. Reducing the series of events leading to the accident is the responsibility of the companies, which must continue to refine systems and draw up counter actions to avoid accidents and safeguard the public.
2. Legal and Ethical Issues: Legal and moral consideration surrounding autonomous vehicles is liability in case an accident occurs, and the moral decision making potential of an AI systems. These things will have to be dealt with policymakers who have to first of all down clear guidelines.
3. Infrastructure Investment: It will take a lot of money to adapt urban infrastructure to accommodate autonomous vehicles. With the necessary changes that need to be funded and implemented, governments and private stakeholders will have to work together.
4. Cybersecurity: It’s important to protect self-driving systems from cyber threats. Complex software and communication networks are inherent features in Autonomous vehicles and they may therefore pose as targets for cyberattack. For these systems to be safeguarded robust cybersecurity measures are needed.
5. Public Acceptance: Public acceptance for self driving vehicles is important for widespread adoption. It has been realized by companies, that they also must meet safety, privacy, and job displacement concerns and educate the people about the advantages of autonomy of driving.

Conclusion

If President-elect Donald Trump’s administration explores a federal framework for self-driving vehicles as his administration proposed, Tesla and the autonomous vehicle industry have a real shot at walking into that opportunity. This regulatory move could speed up the adoption of self driving technologies, helping companies such as Waymo and Zoox.

The industry has it challenges to overcome, but the prospects are good. This paves the way for a future with self driving vehicles that is the norm on our roads if we could develop a cohesive regulatory environment that would drive innovation and improve public trust in the process. But as the industry moves forward, the hand work between policymakers, companies and the public will be a central part of realizing the full promise of autonomous driving technology.