Tesla Stock Surges 10% as EV Regulation Easing Sparks Market Rally

Tesla shares jumped 10% following regulatory changes from the Trump administration that relax safety standards for electric and autonomous vehicles. The new rules, announced by US Transportation Secretary Sean Duffy, eliminate certain federal requirements like mandatory rearview mirrors and reduce crash reporting frequency for self-driving cars.

The regulatory shift aims to bolster US automakers against Chinese competition. Companies can now file monthly incident reports instead of immediate disclosures, with only serious crashes triggering mandatory alerts. This regulatory flexibility provides Tesla and other EV makers with expanded operational latitude.

While the changes fueled a broader market recovery, consumer advocates raised safety concerns. The policy adjustment comes as legacy automakers and tech companies accelerate their autonomous vehicle development timelines.