Tesla says it will start selling Cybercabs by end of year

Tesla announced on Wednesday that it plans to begin selling its Cybercab, an autonomous two-seater vehicle, by the end of the year. Despite federal regulators probing whether the car meets safety standards, Tesla's vice president of engineering, Lars Moravy, revealed during the company's third-quarter earnings call that today's Cybercab autos are intended for their own robotaxi fleet.

As this fleet expands, Tesla will primarily deliver fully designed autonomous vehicles to customers, starting small and scaling as they learn about delivery, ownership, and fleet management.

The idea of selling the autonomous vehicle to third parties was first proposed last month during a Cybercab event in Austin, with Tesla even providing a form for interested buyers. However, it was unclear if Tesla would proceed or how. CEO Elon Musk has long discussed building a large fleet of low-cost robotaxis, but his recent comments indicate a shift in strategy.

Currently, Tesla owners can subscribe to Full Self-Driving (Supervised), a driver-assistance system that automates many tasks but still requires driver supervision. The company continues to update this system, but a human driver must remain engaged and prepared to take control.

Musk stated that the Cybercab is designed as a ride-hailing vehicle, not a privately owned car, emphasizing that most Cybercab vehicles will be operated by Tesla. There is one potential hurdle to Tesla's Cybercab fleet plans: the National Highway Traffic Safety Administration (NHTSA) has opened an investigation into the vehicle, just days after it began operating on public streets in Austin.

The NHTSA is examining Tesla's certification process and related matters to ensure the Cybercab complies with Federal Motor Vehicle Safety Standards, which require manual controls like brake pedals and mirrors. If the investigation finds that the Cybercab does not meet safety standards, it could affect whether Tesla or others can legally operate the vehicle.