Tesla has launched its Cybercab — a purpose-built driverless taxi with no steering wheel or pedals — in Austin, Texas, marking a significant step in the company's push into autonomous transport. The launch, which took place on Thursday at a closed event not open to the media, was quickly overshadowed by news that the US National Highway Traffic Safety Administration (NHTSA) has opened a formal investigation into whether the vehicle meets federal safety standards.
Unlike Tesla's existing fleet of robotaxis — modified Model Y passenger cars equipped with sensors and cameras, sometimes carrying a safety monitor — the Cybercab has been designed from the ground up for autonomous operation. The two-seat vehicle contains no manual controls, replacing them with a large LED screen for passenger use. Tesla CEO Elon Musk has described the Cybercab as the financial backbone of his company, envisioning a vast fleet that would eventually cover most of the United States. Approximately 45 Cybercabs were registered in Texas ahead of the launch, though how many are currently operating on public roads remains unclear.
The NHTSA investigation centres on the process and technical data Tesla is using to certify the Cybercab for road use. Under existing US federal regulations, vehicles used commercially are generally required to have a steering wheel and pedals, with limited exceptions. Tesla did not apply for an exemption from these rules, a decision that now appears to sit at the heart of the regulator's scrutiny.
The launch places Tesla in direct competition with Waymo, the autonomous vehicle subsidiary of Alphabet — Google's parent company — which currently operates more than 4,000 robotaxis across 14 American cities. Tesla's existing autonomous fleet of modified Model Ys numbers just over 400 vehicles, meaning the company faces a considerable gap to close.
Financial markets responded cautiously to the news. Tesla's share price fell around six percent following the announcement of the regulatory investigation, reflecting investor uncertainty about the legal and commercial path ahead for the Cybercab. The outcome of the NHTSA inquiry could have significant implications not only for Tesla but for the broader regulatory framework governing autonomous vehicles in the United States.