Trump Wants 100,000 Driverless Teslas on the Road… And Uber’s Already Freaking Out
In the latest episode of “America’s Most Bromantic,” (should I trademark that?) Donald Trump and Elon Musk are giving “power couple” a whole new meaning. Members of Trump’s transition team have reportedly earmarked a federal framework for fully self-driving cars as one of the Department of Transportation’s top priorities.
Let’s not pretend this isn’t huge for Musk. Tesla’s robotaxi plans, featuring a Cybercab with no steering wheel and pedals (or dignity) have been stuck in the slow lane thanks to current U.S. regulations. Federal rules allow only 2,500 self-driving vehicles per year under a granted exemption (a cap Musk called “incredibly painful”). With Trump’s team stepping in, there’s talk of increasing that number up to as many as 100,000. That’s a whole lot of Teslas ready to zip around without a human behind the wheel.
Wedbush analysts are already celebrating like their team just won the Super Bowl, calling this potential framework “bullish for Tesla” and sticking a $400 price target on the stock. For context, Tesla shares jumped nearly 8% this morning and have climbed 28% since Trump’s election win. Elon’s stock portfolio is doing so well, it’s practically moonlighting as a hedge fund.
Of course, This policy push isn’t just a coincidence. Musk has become a regular in Trump’s orbit, recently tapped to co-lead a new Department of Government Efficiency alongside entrepreneur Vivek Ramaswamy. Their mission? Cut back regulations and turn bureaucratic red tape into a distant memory. Musk has publicly backed Trump’s vision, calling for federal approval processes that would make self-driving cars a nationwide reality instead of a piecemeal state-by-state headache.
And let’s be honest: this bromance has financial benefits written all over it. Tesla is gunning for a $1 trillion market opportunity in AI and autonomous vehicles. Compare that to traditional automakers like Ford and GM, who are still stuck figuring out how to make EVs profitable. It’s not hard to see why investors are all in on Tesla’s big robotaxi dreams.
Of course, not everyone is thrilled. Shares of Uber and Lyft dipped by 6% on the news. After all, if Tesla’s autonomous fleet gets the green light, rideshare companies will be looking at an existential crisis. Why pay a driver when a robotaxi can drive you around town for pennies on the dollar?
And don’t forget Congress (where optimism and tax dollars go to die). Past attempts at federal autonomous vehicle legislation have stalled harder than a teenager learning stick shift. A bill that passed the House during Trump’s first term got bogged down in the Senate, and a recent attempt to revive it under Biden also flopped. So a smooth rollout is far from guaranteed.
Musk has plans to roll out Tesla robotaxis by 2026. But there’s still the huge question mark around the matter of autonomous promises. And let’s not ignore that FSD is under federal investigation after a string of collisions involving Teslas. Regulatory hurdles or not, Tesla has work to do before the government gives them the greenlight.
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Stock.News has positions in Tesla, Ford, and Uber.