Tesla's stock surged today after the Trump administration announced plans for a new autonomous vehicle regulatory framework viewed as favorable to the company.
Why it matters: The Transportation Department's new framework expedites certain crash reporting requirements and expands the types of autonomous vehicles that can be tested on American roadways.
The stock — which rose 18% over the last five days — also got a boost this week when investors cheered CEO Elon Musk's announcement that he would refocus more of his time on Tesla.
Despite the recent gains, Tesla shares are still down nearly 30% on the year as the company faces brand damage from the backlash to Musk's role in Washington.
The bottom line: This is one of the first concrete signs that the Trump administration will be friendly to self-driving cars, which Tesla considers core to its future.