Tesla Inc. (TSLA) Stock: Trump Administration Framework Boosts Robotaxi Plans

TLDR

Transportation Secretary Sean Duffy announced a new framework for self-driving cars that could benefit Tesla’s robotaxi plans Tesla stock rose 0.3% in premarket trading Friday after the announcement Tesla plans to launch a self-driving cab service in Austin, TX in June and produce Cybercabs by 2026 Tesla’s core EV business is struggling with deliveries falling 13% in Q1 2025 and automotive revenue down 20% Tesla stock trades at a P/E ratio of 148.6, significantly higher than tech giants like Nvidia, Microsoft, and Apple

---

Tesla shares gained ground Friday following the announcement of a new federal framework for autonomous vehicles that could accelerate the company’s ambitious robotaxi plans. The news comes as the electric vehicle maker faces declining sales in its core business.

Tesla, Inc. (TSLA)

Transportation Secretary Sean Duffy unveiled the framework Thursday, emphasizing the need to “slash red tape” and move toward a single national standard for self-driving vehicles. The announcement aims to balance innovation with safety concerns.

“This Administration understands that we’re in a race with China to out-innovate, and the stakes couldn’t be higher,” Duffy stated in the release.

The policy shift represents a potential win for Tesla, which has placed enormous emphasis on autonomous driving technology. CEO Elon Musk has repeatedly told investors that self-driving capabilities are essential to the company’s future value.

Tesla plans to launch its first self-driving taxi service in Austin, Texas this June. The company also aims to begin production of its dedicated “Cybercab” robotaxi vehicle in 2026.

EV Sales Challenges Mount

While the autonomous vehicle news boosted investor sentiment, Tesla continues to battle headwinds in its core electric vehicle business. The company reported a 13% drop in vehicle deliveries during the first quarter of 2025.

This sales decline translated into a 20% decrease in automotive revenue compared to the same period last year. Even more concerning for investors, Tesla’s overall net income plunged 71% year-over-year.

Competition in the electric vehicle space has intensified significantly. Chinese manufacturers like BYD are producing low-cost electric vehicles that start at just $10,000 in their home market.

BYD has also begun expanding into European markets, threatening Tesla’s hard-won market share on the continent.

Tesla’s brand has faced additional challenges related to Musk’s political activities. The CEO has been running the Department of Government Efficiency (DOGE), established by the Trump administration to reduce government spending.

Protests have occurred at Tesla dealerships worldwide in response to DOGE’s cuts to programs like the U.S. Agency for International Development. Musk recently told investors he plans to reduce his time at DOGE starting in May to refocus on Tesla.

Autonomous Future vs. Present Reality

The company’s autonomous driving ambitions face both regulatory and competitive hurdles. Tesla’s Full Self-Driving (FSD) software hasn’t yet received approval for unsupervised use on public roads.

This puts Tesla behind competitors like Alphabet’s Waymo, which already completes approximately 250,000 paid autonomous trips weekly in several U.S. cities.

However, Tesla could potentially leap ahead once FSD wins regulatory approval. The software would be compatible with millions of existing Tesla vehicles, creating an instant fleet of potential robotaxis that could generate revenue for both vehicle owners and Tesla.

Musk has claimed the Cybercab will cost about 80% less to produce than Waymo’s vehicles, potentially giving Tesla a major pricing advantage at scale.

The company is also developing the Optimus humanoid robot. Tesla plans to produce thousands of these robots this year for use in its own factories, with Musk projecting production could reach over 1 million annually by 2029.

Tesla stock trades at a price-to-earnings ratio of 148.6, making it approximately five times more expensive than the Nasdaq-100 index. This valuation exceeds those of tech giants like Nvidia, Microsoft, Apple, Alphabet, and Amazon.

The company’s shares rose 3.5% on Thursday before the framework announcement, though this gain came during a strong market day when the Nasdaq Composite added 2.7%.

While streamlining the accident reporting requirements for vehicles with advanced driver assistance features, the Department of Transportation will maintain the basic reporting structure that Tesla has criticized in the past.

Tesla’s stock was up 0.3% to $260.26 in premarket trading Friday, while S&P 500 and Dow Jones Industrial Average futures were down 0.2% and 0.4%, respectively.

The post Tesla Inc. (TSLA) Stock: Trump Administration Framework Boosts Robotaxi Plans appeared first on CoinCentral.