Tesla stock was rising Friday after the Federal Government moved a step closer to putting more self-driving cars on U.S. roads.

Shares of the electric-vehicle maker were up 7% in early trading.

Transportation Secretary Sean Duffy announced a new framework for self-driving cars Thursday afternoon, prioritizing safety, unleashing innovation, and enabling commercial deployment.

"This Administration understands that we're in a race with China to out-innovate, and the stakes couldn't be higher," said Duffy in a news release. "As part of DOT's innovation agenda, our new framework will slash red tape and move us closer to a single national standard that spurs innovation and prioritizes safety."

It's good news for Tesla, which has bet big on self-driving technology. "I mean, if somebody doesn't believe Tesla's going to solve autonomy, I think they should not be an investor in the company," said CEO Elon Musk in April 2024.

His EV maker plans to launch a self-driving cab service in Austin, TX, in June. It plans to start producing its Cybercab robotaxi in 2026.

Tesla shares rose 3.5% on Thursday, possibly boosted by the news. The market was strong, though. The Nasdaq Composite added 2.7%.

The news is also a positive for Alphabet's Waymo. It operates self-driving taxis in several U.S. cities.

Duffy is also maintaining and "streamlining" a program Musk has criticized. The National Highway Traffic Safety Administration is keeping its standing general order on crash reporting for cars equipped with advanced driver assistance features.

Tesla has ended up reporting the most incidents, by far, because it is essentially the only auto maker with a fully connected fleet of vehicles. Tesla is the only one that automatically knows if driver assistance is engaged when accidents happen. Other auto makers have to rely on things such as police reports.

The self-driving framework is the bigger deal, although it only makes it easier to introduce self-driving cars. The real task is teaching cars to drive themselves.

Tesla shares are having quite a week, with a gain of more than 14% through early trading Friday. The company reported earnings on Tuesday evening, giving investors the welcome news that Musk would be spending more time at Tesla in the coming months.