Tesla shares jumped Friday, extending their recent rally after CEO Elon Musk said he would spend more of his time focusing on Tesla, as the Trump administration moved to loosen rules around self-driving cars.

The stock was up over 8% in recent trading, making it one of the top-performing stocks on the S&P 500 and Nasdaq Friday.

The Trump administration said Thursday it would loosen rules governing autonomous vehicles, in an effort to help U.S. firms compete with Chinese rivals.

“This Administration understands that we’re in a race with China to out-innovate, and the stakes couldn’t be higher,” U.S. Secretary of Transportation Sean P. Duffy said in a 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.”

The move would benefit Tesla, which has long touted autonomous cars as central to its growth prospects. Musk said during the company's earnings call Tuesday that Tesla expects to be selling fully autonomous rides in Austin, Texas, in June, with that business expanding to other cities this year and becoming financially material in the second half of 2026. 

Tesla shares have been rallying since the call, as investors focused on Musk's pledge to spend more time at Tesla, and the company's plans for a cheaper model and fully self-driving vehicles, rather than its weaker-than-expected results.

With Friday's gains, shares have added about 15% this week. Still, the electric vehicle maker’s stock has lost nearly a third of its value since the start of the year.