Tesla’s stock price soared 18% this week, its best weekly gain since November’s presidential election. The surge came after the Department of Transportation released an Automated Vehicle Framework aimed at relaxing regulatory standards for self-driving cars.
The framework is seen as a significant boost to Tesla’s plans for autonomous vehicles and robotaxis. CEO Elon Musk will now have more time to focus on his core business, having reassured investors that he would spend less time leading President Trump’s Department of Government Efficiency.
Despite the news, Tesla’s quarterly results were disappointing, with a 20% decline in automotive revenue and narrower margins. However, analysts remain optimistic about the company’s ability to overcome near-term challenges, citing its potential for growth in AI, autonomous driving, and robotics.
Musk has set ambitious timelines for the rollout of self-driving cars and humanoid robots, which are expected to contribute significantly to Tesla’s value. As the Department of Transportation moves forward with the framework, investors are looking ahead to a future with looser regulations and more opportunities for innovation.
Source: https://www.investopedia.com/why-tesla-stock-just-had-its-best-week-since-november-musk-tsla-11722441