Tesla Inc (NASDAQ:TSLA) shares surged after the US Department of Transportation (DOT) announced a new regulatory framework for self-driving vehicles.
The updated rules, unveiled by Transportation Secretary Sean Duffy, are designed to prioritize safety, encourage innovation, and enable the commercial deployment of autonomous vehicles (AVs).
The new framework loosens federal safety regulations and streamlines crash reporting requirements for self-driving vehicles, allowing companies like Tesla to more easily test and deploy autonomous vehicles.
“This administration understands that we’re in a race with China to out-innovate, and the stakes couldn’t be higher,” Duffy said in a statement.
“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.”
Peter Simshauser, National Highway Traffic Safety Administration chief counsel, added: “By streamlining the Standing General Order for Crash Reporting and expanding an existing exemption program to domestic vehicles, we are enabling AV manufacturers to develop faster and spend less time on unnecessary process, while still advancing safety.”
Shares of Tesla surged 9.3% to $283.70 on Friday afternoon, on track to end the week more than 23% higher.