(Sharecast News) - Shares in electric carmaker Tesla surged ahead of the bell on Monday following news that president-elect Donald Trump would look to establish a federal framework for fully self-driving vehicles and make it the Department of Transportation's priority number one.
Tesla chief executive Elon Musk has been a vocal supporter of Trump and is now considered in his inner circle. Along with Vivek Ramaswamy, he will head up the recently announced Department of Government Efficiency, which has been tasked with reducing excess government spending.
The Trump administration has been looking for people to head up the department's self-driving vehicles regulation framework, with former Uber executive Emil Michael said to be in the running, as well as Republicans Sam Graves and Garrett Graves also said to have been considered. Current federal rules significantly restrict vehicles that do not have foot pedals and steering wheels.
Telsa has previously revealed plans to launch a Robotaxi service in 2026 but current government regulations would limit the potential service. However, Musk's influence in the new White House could potentially lay the groundwork for mass deployment.
As of 1050 GMT, Tesla shares had rallied 8.13% to $346.81 each.
Reporting by Iain Gilbert at Sharecast.com