Tesla stock rises, Uber and Lyft fall, after report that Trump might be friendly to self-driving cars

Shares in Tesla, Inc. (Nasdaq: TSLA) are rising in premarket trading this morning after reports that President-elect Donald Trump’s transition team wants to make a federal framework for fully self-driving cars a top priority for the Department of Transportation (DOT).

TSLA shares are currently up over 6.3% on the news, which Bloomberg first reported. According to the publication, Trump’s team desires a federal framework to regulate self-driving cars that are fully autonomous, in the process perhaps hastening their rollout. Current federal rules place limitations on companies that wish to roll out cars without traditional controls, such as steering wheels and brake and acceleration pedals.

It’s not surprising that Tesla’s stock has risen since the report. The company, whose CEO, Elon Musk, is a key Trump advisor, has recently publicized its plans for a fully autonomous robo taxi called the Cybercab. A federal framework on fully autonomous vehicles and a more self-driving-friendly DOT would help Musk’s robo taxis get onto streets sooner—should technical challenges be overcome. Musk has said he envisions a 2026 rollout for the Cybercab.

Tesla’s gain is Uber and Lyft’s loss

But while TSLA stock was up on the news, shares in Uber Technologies, Inc. (NYSE: UBER) and Lyft, Inc. (Nasdaq: LYFT) fell slightly. UBER shares are currently down 3% in premarket, while LYFT shares are down 2.3%. 

Should Tesla’s Cybercab ever come to fruition—and it’s far from a certainty—the autonomous car could pose a threat to Uber and Lyft’s current business models.

As for Tesla, the company’s stock is up around 28% since Trump won an unexpectedly decisive victory in the 2024 presidential election. He has since appointed Musk as one of his advisors to lead a so-called Department of Government Efficiency to identify alleged wasteful spending or burdensome regulations.