Tesla shares jumped more than 8% Monday morning before falling early in the afternoon following a weekend report that That of President-elect Trump The transition team is seeking to ease regulations surrounding autonomous vehicles.

Bloomberg’s report on Sunday says Trump’s team is considering developing a regulatory framework for self-driving cars, as part of a major priority for the Department of Transportation (DOT).

Tesla shares rose Monday following a report that the Trump administration aims to ease regulations surrounding self-driving cars. (Photo by Stanislav Kogiku/SOPA Images/LightRocket via Getty Images / Getty Images)

Wedbush analysts led by Dan Ives wrote in a note following the report: “This would be a huge step forward in easing U.S. rules on self-driving cars and would be a significant tailwind to the autonomous and AI vision of Tesla by 2025.”

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Tesla shares have soared more than 53% in the past month since Trump won the presidential election, securing a second term with the support of Elon Musk, CEO of Teslawhom Trump hired to co-lead a new Department of Government Effectiveness.

Tesla CEO Elon Musk (right) speaks on stage as he joins former US president and Republican presidential candidate Donald Trump at a campaign rally at the site of his first attempt at assassination in Butler, Pennsylvania on October 5, 2024. (JIM WATSON/AFP via Getty Images / Getty Images)

The analysts wrote: “Musk’s significant influence in the Trump White House is already having a major influence and, ultimately, the golden path for Tesla around Cybercabs and autonomous vehicles is now within reach with a emboldened Trump/Musk strategic alliance unfolding in real time and very much online. with our thesis.”

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In a previous note, Webush analysts predicted The valuation of Tesla could double to $2 trillion in the next 18 months.

While news that the second Trump administration is pursuing a framework for self-driving cars sent Tesla shares soaring, shares of ride-hailing giants Uber and Lyft were lower on Monday, down about 6.5% and 5.5%, respectively.

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