Tesla’s stock surged 9.8% on Friday, marking an 18% weekly gain. The jump followed the US Department of Transportation’s (DoT) announcement of new rules supporting self-driving cars.
The new regulations simplify reporting for cars with automated driving systems. They also allow US-made self-driving cars to enter testing phases faster. This move positions the US to compete with China in autonomous vehicle innovation.
Tesla’s Big Plans
Elon Musk, Tesla’s CEO, said during the company’s latest earnings call that Tesla plans to launch fully autonomous vehicles in Austin, Texas, by June. This is a significant step toward making Tesla a leader in the autonomous vehicle market.
Musk added that Tesla’s future lies in mass-producing autonomous cars and humanoid robots at lower costs. If successful, this could significantly boost the company’s value.
Investor Confidence Boost
Musk’s decision to step back from his role in Donald Trump’s government also boosted investor confidence. Previously, Musk’s political ties had negatively impacted Tesla’s brand, particularly in Europe, where it affected car sales.
Dan Ives, an analyst at Wedbush, believes Musk’s move away from politics will help Tesla focus on its core business. This includes self-driving cars and robots, which are key to the company’s bright future.
Source: finance yahoo