Tesla Cybercab Launches in Austin but NHTSA Probe and Muted Rollout Send Stock Down 6%

Tesla officially began commercial Cybercab rides in limited areas of Austin, Texas on the evening of September 3, deploying roughly 1,000 of the two-seat, fully autonomous robotaxis that carry no steering wheel, pedals, or side mirrors. The rollout was geofenced and restricted to an invitation-only event, falling well short of the broad multi-city debut many investors had anticipated. An invitation-only launch event at ACL Live in downtown Austin lasted about 15 minutes, and CEO Elon Musk did not appear in person. The company also published an interest form inviting businesses to buy Cybercab fleets or provide supporting infrastructure, signaling ambitions to extend the service beyond Tesla's own operations.

Within hours of the first Cybercabs taking to Austin's streets, the National Highway Traffic Safety Administration opened a formal audit into approximately 1,000 Cybercab vehicles, examining the process and technical data Tesla relied on to claim compliance with federal vehicle safety standards. The agency said it is evaluating whether the vehicle, which lacks the steering wheel, pedals, and mirrors typically required under federal motor vehicle safety rules, meets those standards. Tesla had not filed a federal exemption request with regulators as of days before the launch.

Tesla shares, which had surged roughly 5.4% to $376.37 on Thursday ahead of the event on investor anticipation, reversed sharply on Friday. The stock fell approximately 6% to around $363, extending losses through the session as the NHTSA probe compounded disappointment over the limited scope of the rollout. Options desks noted that roughly $900 million in call premium had flooded into Tesla before the reveal, amplifying the pain as sentiment reversed. GLJ Research analyst Gordon Johnson reiterated a sell rating and issued a 12-month price target of $24, while other analysts flagged unanswered questions about production ramp timelines and deployment scale. Gene Munster said the Austin launch reflected Elon Musk entering a more cautious phase around robotaxi safety following prior incidents. Separately, market observers noted that prediction markets are pricing a Tesla-SpaceX merger at nearly 50%, adding another layer of uncertainty for investors trying to value Tesla as a standalone company.