Tesla shares climbed nearly 10% on Friday, extending a rally fueled by Chief Executive Officer Elon Musk's announcement that he will devote more time to the electric vehicle company. The gains followed the Trump administration's decision to relax regulations governing autonomous vehicles to bolster U.S. competitiveness against China.

The U.S. Department of Transportation said Thursday that it would implement a new framework aimed at reducing regulatory hurdles and moving toward a national safety standard for self-driving technology. Transportation Secretary Sean P. Duffy said in a statement that the initiative would "slash red tape" and encourage innovation in a sector seen as critical to economic leadership.

Tesla, which has positioned autonomous driving as a key pillar of its future growth, is expected to benefit from the regulatory shift. During Tesla's first-quarter earnings call on Tuesday, Musk said the company plans to begin offering fully autonomous ride services in Austin, Texas, starting in June 2025. He said the business could expand to additional U.S. cities later this year and become financially significant by the second half of 2026.

Investors have responded positively to Musk's renewed focus on Tesla and plans for lower-cost models and self-driving capabilities, outweighing concerns about the company's weaker-than-expected quarterly results.

The Trump administration's regulatory changes come as the U.S. aims to solidify its leadership in emerging automotive technologies, while companies such as Tesla seek to translate technological advances into new revenue streams.

Furthermore, Tesla Inc.’s India office is refunding early bookers of its Model 3, according to emails seen by Bloomberg News, sparking speculation the American electric vehicle maker is nearing a roll out in the world’s third-largest automobile market.

“We would like to return your reservation fee for the time being,” read the emails to customers who had made these bookings back in 2016. “When we finalize our offerings in India, we will reach out in the market again. We hope to see you back with us once we are ready to launch and deliver in your country.”

The Elon Musk-led car maker is refunding the years-old bookings since the older generation of the Model 3 is being discontinued.