Tesla Drops as NHTSA Probes Cybercab Controls

Tesla shares fell about 1% on Tuesday, 15 September, after the National Highway Traffic Safety Administration (NHTSA) demanded more details regarding the Cybercab. The US auto safety regulator opened a probe to determine how Tesla determined that its dedicated robotaxi meets applicable federal motor vehicle safety standards.

The agency sent a special order requesting details on fleet size, operating cities, speed and road limits, and how Tesla chose which rules apply to the vehicle. Regulators asked whether the two-seater Cybercab can be driven using temporarily attached human controls and if those add-ons were involved in certification. NHTSA also questioned compliance with safety standards written for human drivers, including dashboard indicators, gear-position displays, mirrors, and foot-controlled brakes.

Tesla introduced the vehicle at an Austin launch event on 3 September and launched public rides in limited sections of the city. No automaker has ever sold a car without pedals or a steering wheel to the public. In 2024, CEO Elon Musk stated that Tesla plans to sell the Cybercab for about $30,000 or less before 2027. The vehicle relies strictly on camera data for its autonomous driving system, unlike competitors such as Waymo that also use radar and lidar.

Tesla must submit its response by 30 September. Failing to respond completely could trigger a Justice Department lawsuit and civil penalties reaching up to $27,874 per day, capped at approximately $139 million for a related series of violations.