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Investing.com -- Tesla (NASDAQ:TSLA) stock rose 2.6%, hitting a session high on Friday after a report that the US government is taking steps to ease regulations that have hindered the deployment of self-driving vehicles without driver controls.
According to Bloomberg, the Trump administration is streamlining the exemption process for automakers seeking to deploy self-driving cars designed without traditional steering wheels or brake pedals. This regulatory shift could significantly benefit Tesla’s ambitions to launch its robotaxi service.
The National Highway Traffic Safety Administration (NHTSA) announced it will simplify the exemption procedure, which previously resulted in processing times that could stretch for years. In a letter posted to its website on Friday, NHTSA Chief Counsel Peter Simshauser stated the agency "anticipates reaching decisions on most exemption requests within months rather than years."
Current federal safety standards effectively require new vehicles to include human driving controls, forcing companies developing autonomous vehicles to seek exemptions - a process that has created substantial delays for manufacturers.
While Tesla shares climbed on the news, ride-hailing companies Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) saw their shares edge lower, potentially reflecting investor concerns about future competition from autonomous taxi services.
The regulatory changes align with Tesla CEO Elon Musk’s previously announced plans to develop a fleet of self-driving "Cybercabs" that could compete directly with traditional ride-sharing services.