Self-driving justifies Tesla's market cap more than car sales, says RBC's Tom Narayan

Stock Performance and Market Reactions - Tesla shares rose significantly due to reports of the Trump administration planning to ease federal regulations on self-driving vehicles, which is seen as a positive for the company[1] - The stock's recent performance is partly attributed to the alignment between Elon Musk and the president-elect, but there are risks associated with potential disagreements between the two, which could impact Tesla's stock[3] Regulatory Impact on Tesla - Federal deregulation of autonomous vehicles is crucial for Tesla's strategy, as it allows for the development of vehicles without traditional controls, reducing costs and enabling greater market share capture[1] - The potential elimination of the $7,500 tax credit for electric vehicle purchases is viewed as a negative for Tesla, as it may hinder competition against traditional vehicles like the Toyota Camry, despite some narratives suggesting it could benefit Tesla[2] Valuation and Market Opportunities - The valuation of Tesla's Robotaxi and Full Self-Driving (FSD) features represents a significant portion of the company's price target, indicating that successful deregulation could lead to substantial market opportunities[2][3]