US probes Tesla’s steering-wheel-free taxis

Federal regulators are launching an investigation into whether Tesla's newly introduced steering-wheel-free taxis, known as Cybercabs, meet safety regulations, just a day after the electric vehicle company began offering rides in these vehicles. The National Highway Traffic Safety Administration (NHTSA) is probing Tesla's compliance with federal rules concerning the two-seat Cybercabs, which lack essential steering wheels, mirrors, and brake pedals typically found in conventional vehicles.

Tesla CEO Elon Musk inaugurated the Cybercab service in Austin, Texas, with a grand event, deploying dozens of these futuristic taxis on city streets. However, the service's launch saw a dip in Tesla's stock price, with shares plummeting nearly 6% to $354.08 on Friday, after climbing the previous day. Tesla has not yet responded to inquiries regarding the matter.

Prior to the launch, Tesla had stated it relied on a self-certification process to ensure the Cybercabs complied with federal standards. Nevertheless, the agency is scrutinizing whether the taxis indeed meet these requirements. In its report on the probe, the agency stated it would conduct a comprehensive audit to "examine the process and technical data" Tesla utilized in the certification.

The Austin service's debut marks the beginning of a planned nationwide rollout of an affordable, driverless taxi service, which Musk claims will revolutionize urban transportation. Musk intends to incorporate Cybercabs, which lack manual controls that passengers could use to take over in an emergency, into Tesla's existing cab service, which has thus far utilized only traditional Tesla vehicles.

This robotaxi network has been operating in Austin for over a year and has also begun serving five other cities in Texas and Florida. Typically, automakers self-certify when introducing new vehicles on public roads; however, regulators only investigate certifications they suspect might breach federal rules.