Al Root

Tesla stock was rising in early trading Friday after the Federal Government moved a step closer to putting more self-driving cars on U.S. roads.

Shares of the electric-vehicle maker were up 0.3% to $260.26 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were down 0.2% and 0.4%, respectively.

Transportation Secretary Sean Duffy announced a new framework for self-driving cars Thursday afternoon, prioritizing safety, unleashing innovation, and enabling commercial deployment.

"This Administration understands that we're in a race with China to out-innovate, and the stakes couldn't be higher," said Duffy in a news release. "As part of DOT's innovation agenda, our new framework will slash red tape and move us closer to a single national standard that spurs innovation and prioritizes safety."

It's good news for Tesla, which has bet big on self-driving technology. "I mean, if somebody doesn't believe Tesla's going to solve autonomy, I think they should not be an investor in the company," said CEO Elon Musk in April 2024.

His EV maker plans to launch a self-driving cab service in Austin, TX, in June. It plans to start producing its Cybercab robotaxi in 2026.

Tesla shares rose 3.5% on Thursday, possibly boosted by the news. The market was strong, though. The Nasdaq Composite added 2.7%.

The news is also a positive for Alphabet's Waymo. It operates self-driving taxis in several U.S. cities.

Duffy is also maintaining and "streamlining" a program Musk has criticized. The National Highway Traffic Safety Administration is keeping its standing general order on crash reporting for cars equipped with advanced driver assistance features.

Companies have to report accidents involving features. Tesla, however, ends up reporting the most, by far, because it is essentially the only auto maker with a fully connected fleet of vehicles. Tesla is the only one that knows if a car has driver assistance engaged in an incident automatically. Other auto makers have to rely on things such as police reports.

The streamlining leaves much of the order unchanged but requires no mandatory monthly reports.

Accident reporting will continue. The self-driving framework is the bigger deal. To be sure, a framework only makes introducing self-driving cars easier. The harder task is teaching cars to drive themselves.

Write to Al Root at allen.root@dowjones.com

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April 25, 2025 07:10 ET (11:10 GMT)

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