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President-elect Donald Trump’s team has told advisers that it intends to make a federal framework for fully self-driving cars one of the priorities for the Transportation Department, Bloomberg reported, citing people familiar with the matter.

Tesla shares (TSLA) rose more than 7% in premarket trading Monday after the announcement, as the news is seen as a big boon for Tesla. The company currently leads the way in fully autonomous driving, having already introduced vehicles without traditional controls like a steering wheel and pedals.

“This would be a huge step forward in easing U.S. rules for self-driving cars and be a significant tailwind for Tesla’s autonomous and AI vision heading into 2025,” Wedbush analyst Daniel Ives said in a note.

In October, Telsa announced plans to launch its Robotaxi service in 2026. If the Department of Transportation makes the development of fully self-driving cars one of its priorities, it will lay the groundwork for the mass deployment and success of Tesla’s new service.

“We estimate the AI ​​and autonomous opportunity is worth $1 trillion alone for Tesla and we fully expect under a Trump White House these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era,” Wedbush added.

The investment firm believes that Tesla stock is “the most undervalued AI play in the market today.”

Tesla shares have been up 28% since Trump won the election on November 5th.

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