Tesla launched Cybercab in Austin. Hours later, the feds launched an investigation.

Tesla unveiled its autonomous Cybercab service in Austin on Thursday with a lavish event, but the excitement was short-lived as the National Highway Traffic Safety Administration (NHTSA) launched an investigation into the new gold-covered robotaxis just hours later.

The Cybercabs, which seat two riders, boast luxurious features such as butterfly doors, a large Grok-enabled video screen, and the absence of a steering wheel and pedals. These design choices prompted the NHTSA to scrutinize the vehicles, as federal regulations require autonomous vehicles to have these back-up controls.

The Department of Transportation is contemplating whether to drop the requirement for steering wheels and pedals, allowing companies like Amazon's Zoox to operate without them following years of review and information requests. Both Zoox and Cybercabs had self-certified that their driverless cars met Federal Motor Vehicle Safety Standards before launching services.

The U.S. NHTSA sets strict vehicle performance requirements, and automakers must certify their vehicles meet these standards to access the U.S. market. If certified vehicles fail to adhere to these requirements, NHTSA conducts investigations. It remains uncertain whether the NHTSA's investigation will significantly hinder Cybercab expansion beyond Austin.

The Trump administration aims to balance the advancement of autonomous technology with safety concerns, emphasizing the need for the NHTSA to ensure compliance with all relevant laws while promoting innovation.