Tesla Is Being Investigated For Launching its Cybercab Without a Wheel Or Pedals. Its Stock Is Plunging.

The National Highway Traffic Safety Administration (NHTSA) opened an investigation into Tesla's decision to launch its Cybercab on public roads without steering wheel or pedals.

The company's stock fell more than 4.5% at 9:56 a.m. ET following the announcement. The agency announced the decision shortly after the first cars were deployed in Austin, Texas.

Federal safety regulations require manual controls, but the Department of Transportation recently proposed removing them for autonomous vehicles.

The NHTSA said Tesla had claimed that self-certified Cybercabs were compliant with all Federal Motor Vehicle Safety Standards (FMVSS).

However, the discrepancy led to an investigation to "examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues."

Tech Crunch noted that there is precedent to the decision. Back in 2022, Zoox, owned by Amazon, self-certified a robotaxi that looked like a cube and lacked traditional controls.

The agency also opened a "special order" seeking more information and launched an audit query. In 2025 Zoox was given an exemption to show its technology, even if it was not commercially operated.

The company then requested an exemption to launch commercial rides. It got it in July 2026, removing one of the last hurdles to begin operating.