Tesla Targets Year-End Cybercab Sales as NHTSA Investigation Looms Over Autonomous Vehicle Push

Reviewed byNidhi Govil

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Tesla plans to sell its gold, butterfly-door Cybercab robotaxis to customers by the end of 2026, even as federal regulators investigate whether the steering wheel-free vehicles comply with safety standards. But Elon Musk made clear the vast majority will remain Tesla-owned for its ride-hailing service.

Tesla Accelerates Cybercab Rollout Amid Federal Scrutiny

Tesla is moving forward with plans to sell its fully autonomous Cybercabs to customers by the end of 2026, despite an ongoing NHTSA investigation into the vehicles' safety compliance

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. Lars Moravy, Tesla's vice president of vehicle engineering, confirmed the timeline during the company's third-quarter earnings call, stating that Tesla is "trying to get Cybercabs to customers by the end of this year"

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. The gold, two-seater vehicles feature butterfly doors and operate without steering wheels, pedals, or mirrors—a design that has drawn scrutiny from the National Highway Traffic Safety Administration

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Source: TechCrunch

Source: TechCrunch

Musk Prioritizes Ride-Hailing Over Private Ownership

Elon Musk clarified during the earnings call that the Cybercab is "primarily" a transport-as-a-service product, with the "vast majority" of vehicles remaining "essentially Tesla-owned" for the company's ride-hailing service

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. This represents a significant shift from initial expectations that individual customers could purchase and operate Cybercabs. Chief Financial Officer Vaibhav Taneja emphasized Tesla's ambition to "literally take over every part of terrestrial transportation," stating the company wants to "basically own transportation of any kind on Earth"

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. Currently, all Cybercabs manufactured at Tesla's Gigafactory in Texas are designated for the company's internal robotaxi fleet

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Expansion Plans and Waymo Competition

Tesla's robotaxi network will expand to Dallas next month, following its September launch in Austin, Texas

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. The company already operates robotaxi versions of its Model Y SUV in Dallas, Houston, and Florida cities including Miami, Orlando, and Tampa. This expansion sets up direct competition with Waymo, the current market leader with more than 4,000 robotaxis deployed across more than a dozen cities

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. Tesla argues its Cybercab is cheaper and easier to build, positioning it to undercut competitors on price. Moravy told analysts that the manufacturing team considers the Cybercab "one of the easiest products for them to scale," suggesting "scaling would not be that much of a challenge"

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Source: ET

Source: ET

Regulatory Hurdles and Safety Compliance Questions

Just hours after Tesla launched paid Cybercab rides in Austin in September, the National Highway Traffic Safety Administration opened an investigation to assess how Tesla determined the vehicles comply with federal vehicle-safety regulations

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. Federal regulations, written decades ago for human-driven vehicles, require manual controls and limit commercial deployment of vehicles designed without them

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. Unlike most countries requiring regulatory clearance before launch, U.S. automakers can deploy vehicles by self-certifying they meet federal standards. Tesla has until October 30 to respond to NHTSA's inquiry

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. Ashok Elluswamy, Tesla's head of AI, acknowledged that securing "all the regulatory approvals" remains crucial for deploying Cybercabs "as fast as we can produce them"

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Technology Development and Future Customer Access

Elluswamy emphasized that remaining bottlenecks for wider robotaxi rollout are "not purely regulatory" but "technology driven"

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. Tesla has gradually expanded service hours from 6 a.m. to 9 p.m. initially, then to 11 p.m., with plans to extend to 2 a.m. soon, driven by improvements in AI software capability. The service still doesn't operate on highways under certain conditions, though Cybercabs have been spotted operating in heavy rain in Austin

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. For customers hoping to own Cybercabs, the path remains uncertain. Since the Unsupervised version of Tesla's Full Self-Driving suite isn't available to consumers yet, initial Cybercabs sold can't immediately join Tesla's ride-hailing service

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. Elluswamy indicated the company believes it can start enabling Unsupervised Full Self-Driving on "some of the first customer vehicles to be part of the Robotaxi fleet" around the second quarter of 2027

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. Musk admitted the new ride-hailing business won't be noticeable in Tesla's overall financial figures until the second quarter of 2027, becoming "probably a big deal by Q3 or Q4 of next year"

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Source: Digital Trends

Source: Digital Trends

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