According to sources familiar with the matter, President-elect Donald Trump's transition team has informed advisors that they plan to establish a federal framework for fully self-driving cars as one of the priorities for the Department of Transportation.

If the new regulations allow self-driving cars without human control, this will directly benefit $Tesla (TSLA.US)$ Chief executive Elon Musk, who has become an important figure within the inner circle of the presidential elect. Musk is betting the future of this electric car manufacturer on autonomous driving technology and artificial intelligence.

As of the deadline for submission, Tesla's pre-market trading surged by over 8%.

Tesla plans to deploy a large number of cars that lack steering wheels or pedals, while current federal regulations pose significant barriers for these companies. Sources familiar with the situation reveal that the Trump team is looking for policy leaders for the department to formulate a regulatory framework for self-driving cars.

Although the Department of Transportation can enact rules through the National Highway Traffic Safety Administration (NHTSA) to help with the running of autonomous vehicles, congressional action would pave the way for the widespread adoption of self-driving vehicles. According to two individuals, bipartisan discussions are underway regarding early legislative measures to develop federal rules around self-driving cars.

One of the candidates being considered for the Secretary of Transportation is Emil Michael, who is the former executive of $Uber Technologies (UBER.US)$ , and has had talks with Trump's team and potential staff. They said the work is still in the early stages and policy details have not yet been finalized.

Republican Congressman Sam Graves from Missouri and Garret Graves from Louisiana are also being considered to lead the department.

The transition team did not respond to requests for comment.

Musk announced in October plans to produce a large number of self-driving Tesla taxis starting in 2026. Current regulations in the usa pose significant obstacles to Musk's so-called Cybercab plan, including limits on its deployment.

Musk supported federal autonomy rules during Tesla's third quarter earnings call, stating he will leverage any role with the government to advance the process of allowing self-driving cars to be used nationwide. This announcement led to competition from uber technologies and $Lyft Inc (LYFT.US)$The stocks plummeted.

Trump subsequently appointed Musk and entrepreneur Vivek Ramaswamy to lead the newly established Department of Government Efficiency, aimed at 'dismantling government bureaucracy' and cutting what is perceived as excessive spending and regulations.

In the past, efforts by the federal government in the usa to legislate regulations for self-driving cars have repeatedly faced setbacks.

Currently, the National Highway Traffic Safety Administration (NHTSA) allows auto manufacturers to deploy 2,500 self-driving cars annually under exemptions, but legislative efforts to increase this number to 0.1 million vehicles have repeatedly failed.

A few years ago, during Trump's first term, a related bill passed smoothly in the House of Representatives, but it became stalled in the Senate. In the first year of the Biden administration, there was an attempt to merge this bill with other legislation, but it failed due to some manufacturers seeking to include language in the bill that would prevent consumers from suing or forming class-action lawsuits.

Editor/Somer