PHOTOS: Tesla Cybercab Launch Draws Scrutiny From Safety Regulators

Tesla’s official Cybercab launch event took place Thursday evening at ACL Live in downtown Austin, marking a major step in the company’s push into autonomous transportation. However, the rollout has already drawn attention from federal safety regulators, given the vehicle’s unconventional design.

The National Highway Traffic Safety Administration (NHTSA) confirmed it is evaluating Tesla’s Cybercab rollout in Texas. The two-seat robotaxi hits the streets without a steering wheel, control pedals or mirrors, features federal safety norms typically require. A spokesperson told Reuters: “NHTSA is in contact with Tesla and is evaluating the situation,” though no further details were provided. This adds to several existing investigations into Tesla, including scrutiny of its camera-only driving system’s reliability in low-visibility conditions such as fog, sun glare and dust, a probe linked to at least nine documented crashes, including one fatal pedestrian collision. Tesla is separately under investigation for failing to promptly report crash data as required.

Ahead of the launch, a Robotaxi-branded Model Y briefly blocked an emergency medical services vehicle outside the event venue. Although the EMS vehicle wasn’t responding to an active call, a Tesla fan reportedly confronted the crew, pointing out that the robotaxi had no driver aboard.

Details about the vehicle’s engineering emerged via social media during the event. According to posts from X user Kyle Conner, the Cybercab features an “unboxed” manufacturing process, injection-molded body panels designed to reduce emissions and paint shop reliance, brake-by-wire technology with individual actuators at each wheel, and a front-wheel-drive setup engineered to minimise cabin noise. The vehicle’s battery uses dry cathode 4680 cells engineered for 500,000 miles of fast charging and temperature variation, alongside a 48V low-voltage architecture and a steer-by-wire rack mounted behind the drive unit.

Tesla’s stock gained more than 5% in regular trading ahead of the launch but slipped roughly 3% in after-hours trading, continuing a decline that has left shares down about 20% for the year, as some investors question CEO Elon Musk’s assertion that autonomous vehicles will drive the company’s future growth. Morgan Stanley analyst Andrew Percoco noted that a limited unveiling with few vehicles committed to the road could trigger further sell-offs, while a broader rollout impacting fleet size could excite investors instead.

As of Wednesday, Tesla had registered 45 Cybercabs as part of its Texas robotaxi fleet, which now totals 420 vehicles. By comparison, industry leader Waymo operates 988 vehicles in the state, while Avride runs 344 and Zoox operates 44. Rides are currently limited to a specific area of Austin, with event attendees the first to experience driverless Cybercab trips before public access opened on Friday.

Tesla has also published a “robotaxi interest form” targeting businesses interested in purchasing Cybercab fleets or supporting network infrastructure, a shift from Musk’s earlier vision of individual Tesla owners renting out their self-driving vehicles when not in use, an idea he first floated publicly in 2016 and reiterated during the company’s 2019 Autonomy Day event.

Pricing comparisons on launch day showed a Tesla Robotaxi-branded Model Y ride costing $19.58 for a route where an electric Uber charged $12.96, with Tesla also showing a longer wait time. This contrasts with Musk’s original 2024 pledge that Cybercab would offer “individualized mass transit,” with an estimated operating cost of around 20 cents per mile and a rider price of roughly 30 to 40 cents per mile.

Tesla’s cameras-only approach to autonomy also continues to draw criticism from competitors. While Musk maintains that cameras and artificial intelligence alone are sufficient for full autonomy, rivals such as Waymo have argued cameras “aren’t enough,” and trucking company Aurora uses a combination of cameras, radar and proprietary lidar capable of detecting objects over 1,000 metres ahead.

Separately, a copyright lawsuit tied to Cybercab’s original 2024 unveiling continues to linger over Tesla. Alcon Entertainment accused the company of misusing imagery from Blade Runner 2049 during the vehicle’s promotional reveal and falsely suggesting the studio endorsed the event. Tesla’s motion to dismiss the case was denied, with the suit potentially heading to trial in March.

Despite the regulatory and legal challenges, enthusiasm among Tesla fans remained high throughout the day, with some travelling from as far as San Francisco to catch a glimpse of the vehicle, even without an event invitation.

Some interesting Tesla Cybercab details in no particular order

Watch Cybercab is engineered to be the safest car on the road

Do you think regulatory scrutiny like this could slow Tesla’s broader robotaxi expansion plans?