Investors in Tesla (TSLA.US) welcomed with enthusiasm the news that President Trump has moved to ease federal regulations surrounding autonomous vehicles in the United States. The automaker’s shares surged nearly 8%, as the regulatory changes are expected to simplify the rollout of self-driving technology by softening requirements tied to accident reporting for such systems.
- The National Highway Traffic Safety Administration (NHTSA) confirmed it would maintain the obligation for companies to report incidents involving advanced driver-assistance and autonomous systems. However, the agency plans to streamline the reporting process, a move seen by markets as paving the way for broader adoption of autonomous vehicles across American roads — a space where Tesla continues to lead.
- In addition, the NHTSA announced an expansion of its Automated Vehicle Exemption Program (AVEP) to now cover vehicles manufactured within the United States. Until now, only select foreign-made vehicles could apply for exemptions from full compliance with Federal Motor Vehicle Safety Standards (FMVSS) for testing and research. Under the new framework, domestically produced cars will have similar opportunities to seek exemptions.
- Sean Duffy, the U.S. Secretary of Transportation, emphasized that these changes are aimed at cutting bureaucratic red tape, boosting innovation, and positioning the U.S. to better compete with China. Elon Musk, Tesla’s CEO, had earlier advocated for such regulatory reforms, especially to accelerate the deployment of his Cybercab fleet, set to launch in Texas by June. As reported by the Financial Times, Tesla still requires a formal exemption from the NHTSA to operate these non-standard vehicles on public roads.
Earlier in 2025, Tesla’s shares struggled under the weight of intensifying competition from Chinese manufacturers, fears of tariff escalations, and the fallout from Musk’s close association with President Trump’s administration. Following a brutal first quarter, where Tesla’s profits plunged by 71%, Musk vowed to step back from his role in the controversial Department of Government Efficiency (DOGE) and refocus his efforts squarely on running Tesla.
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Tesla shares are up nearly 8% today, testing the 23.6% Fibonacci retracement level of the downward wave that began earlier this year. The RSI indicator stands at 56, signaling a return to bullish momentum. The stock is still about 7% away from reaching its 200-day EMA.
Source: xStation5
