Autonomous driving vehicle stocks soared on Monday on news that President-elect Donald Trump's administration may prioritize establishing a federal framework for regulating self-driving vehicles.
The development is particularly significant for Tesla (TSLA), which has been at the forefront of pushing for more defined regulations that could accelerate the adoption of autonomous vehicle technology.
In the lead-up to the recent elections, Elon Musk, Tesla's CEO, played a notable role advocating for Trump's campaign, reflecting the tech mogul's strategic positioning within political spheres to influence policy beneficial to Tesla and the broader electric vehicle (EV) industry.
Trump's victory appears to augur well for Tesla, especially with Musk being appointed alongside former Republican presidential candidate Vivek Ramaswamy to spearhead the newly formed Department of Government Efficiency (DOGE in a nod to the Cryptocurrency investors).
In September, excitement peaked among investors when Tesla hinted at advancing its Robotaxi initiative at the "Werobot" event, signaling potential expansions in its autonomous vehicle capabilities.
That enthusiasm was tempered quickly by the realization that significant regulatory changes would be required to facilitate the widespread adoption of such technologies.
This would include adaptations by the National Highway Transportation Safety Bureau among other regulatory bodies, to accommodate the scaling of autonomous vehicles.
What had seemed insurmountable just weeks ago may be quickly changing.
The past week has seen Musk emphasizing his influential role in the Trump administration's transition team, showcasing a relationship between his business pursuits and political leverage.
A new federal regulatory plan for self-driving vehicles would represent a pivotal win for Musk and Tesla, promising to break new ground in an industry that Musk has long sought to revolutionize.
With Elon Musk's close collaboration with the president-elect, Tesla is poised to be a major beneficiary of any forthcoming regulatory lightening.
The public-private partnership not only promises to enhance Tesla’s market position but also sets the stage for a broader acceptance and integration of autonomous vehicles into everyday life, marking a significant leap forward for the automotive industry.
Tesla shares are the second strongest performer in the autonomous driving stocks on today’s news.
Shares of Tesla are up almost 10% as news of the potential for regulatory changes in the autonomous driving industry.
Tesla would benefit not only from the robotaxi product perspective, but the company would also see an increase in demand for the Tesla EVs as drivers warm to the idea of being ushered around the roads.
Shares are approaching the $350 price level on today’s move. A move across that new-high threshold would see analysts start upgrading the stock as we approach 2025.
Remember, only 38% of Wall Street analysts have a buy recommendation on this stock. It’s due for upgrades.
Google’s subsidiary “Waymo” is already operating its autonomous ride-hailing service, Waymo One, in several major U.S. cities including Phoenix, San Francisco, Los Angeles, and Austin.
Waymo is growing its operations and aims to significantly increase the number of rides it provides.
As of the latest updates, in places like Phoenix and San Francisco, Waymo has been expanding its service areas and scaling up its ride numbers. The company has mentioned plans to grow its weekly trips significantly, reflecting their rapid expansion and the adoption of their autonomous driving technology across more urban areas.
Shares of WeRide (WRD) began trading as an American Depository Receipt (ADR) in late September. Established in 2017, this Chinese company has quickly become a leader in the global autonomous driving industry.
WeRide is unique as it is the only company worldwide to hold driverless permits in China, the UAE, Singapore, and the US. It conducts extensive research and operates in over 30 cities across seven countries.
The company has made considerable progress in the commercialization of autonomous driving technologies. This progress was recognized when it was ranked eighth on Fortune Magazine's "2023 Change the World" list for its contributions to reducing traffic issues and promoting sustainability.
WeRide's product line includes a variety of autonomous vehicles such as Robotaxis, Robobuses, Robovans, and Robosweepers. These vehicles serve a wide range of needs from public transportation to logistics and sanitation, covering autonomous systems from Level 2 to Level 4.
In addition to deploying vehicles, WeRide has developed advanced driver-assistance systems (ADAS) in collaboration with major industry players like Bosch and the Renault-Nissan-Mitsubishi Alliance. This development underscores the company's comprehensive approach to integrating its technology into the broader automotive ecosystem.
Pony AI Inc., a leading Chinese autonomous vehicle technology company founded in 2016.
Pony AI is preparing for its initial public offering (IPO), offering 15 million American depositary shares (ADSs). The shares are expected to be priced between $11 and $13 per share.
Pony filed for the initial offering in the U.S. in October.
Pony AI’s targeted price range implies a valuation of up to $4.48 billion at the top end.
The company is known for its cutting-edge robotaxi and robotruck services. It has established strong industry partnerships and holds unique driverless service licenses across major Chinese cities. This positions WeRide as a significant player in the autonomous vehicle sector.
