Tesla shares climbed over 5% on Monday following a Bloomberg News report suggesting that President-elect Donald Trump's transition team is planning to establish federal regulations for autonomous vehicles. The report comes shortly after Elon Musk, Tesla's CEO, was named co-head of the incoming administration's government efficiency department. According to sources, Trump's team is actively seeking policy leaders to draft a unified regulatory framework through the Department of Transportation.

Elon Musk recently criticized the fragmented state-by-state approval process for self-driving vehicles, calling it "incredibly painful." This comes on the heels of Tesla unveiling its two-seat "Cybercab" robotaxi, which lacks a steering wheel and foot pedals and is slated for production in 2026. A cohesive federal policy could simplify the approval process, enabling Tesla to accelerate its advancements in Full Self-Driving (FSD) technology.