Tesla's Cybercabs hit public roads — and an immediate federal investigation

Federal safety regulators are opening an investigation into Tesla's newly deployed Cybercabs following reports of unexpected autonomous behavior.

The National Highway Traffic Safety Administration (NHTSA) launched an Audit Query to review how Tesla authorized its driverless cabs for public use, according to federal filings reported by Ars Technica. Tesla deployed the vehicles without going through NHTSA's driverless exemption process. Administrator Jonathan Morrison stated that while the agency supports automated vehicles, developers must follow federal laws. Tesla did not immediately respond to a request for comment.

Why it matters: Federal investigations can halt vehicle rollouts or trigger massive civil penalties, like the $130 million fine Volvo paid in 2023 over recall issues. CEO Elon Musk wants Tesla judged as a robotics and autonomous vehicle company rather than an automaker. Bypassing regulatory approvals on day one risks stalling that entire narrative.

Former acting NHTSA administrator Ann Carlson called Tesla's decision to ignore the exemption process "gobsmacking." While state records show just 45 Cybercabs operating in Texas today, Tesla eventually plans to deploy millions every year.

Building autonomous cars is hard, but getting along with regulators might be the harder part.