Feds open probe into Musk's steering-wheel-free taxis

Federal regulators are investigating whether Tesla's new steering-wheel-free taxis, known as Cybercabs, comply with safety rules, according to the National Highway Traffic Safety Administration (NHTSA). The investigation comes as Tesla began offering rides in the two-seat vehicles in Austin, Texas, on Thursday. The Cybercabs, which lack typical safety features like steering wheels, mirrors, and brake pedals, raise questions about their compliance with federal regulations.

The company's CEO, Elon Musk, launched the Cybercab service in Austin, followed by a national rollout. Tesla previously relied on a self-certification process for the vehicles, but the NHTSA is now conducting an audit to examine the certification process and technical data. The Cybercab service has been operational in Austin for over a year and has also started in five other cities in Texas and Florida.

The investigation follows several federal probes into Tesla's self-driving software, including one that resulted in the death of a pedestrian in a low-visibility condition.