Concerns Grew with No Steering Wheel or Pedals... Tesla Shares Plunge 6% After Cybercap Reveal

No Federal Safety Exemption Granted

Tesla Shares Drop 6% After Cybercap Launch

As soon as Tesla, the electric vehicle company led by Elon Musk, held its launch event for the 'Cybercap' in Texas, U.S., transportation authorities initiated a safety investigation.

Tesla Cybercap. Tesla

On September 4 (local time), international media including the U.S. daily The New York Times reported that the National Highway Traffic Safety Administration (NHTSA) has begun investigating whether Tesla's Cybercap complies with federal motor vehicle safety standards.

The Cybercap is a gold-painted, two-seater, fully autonomous robo-taxi (driverless taxi). Tesla held the launch event the previous night in Austin for general fans and influencers. What sets the Cybercap apart is that it has neither a steering wheel nor a brake pedal. U.S. transportation regulations require all vehicles to have human-centered control devices such as brake pedals and rearview mirrors. Amazon’s autonomous taxi, Zoox, also lacks a steering wheel and brake pedal, but received pre-approval for an exemption from federal safety standards through a separate procedure. In contrast, Tesla reportedly has not completed the related procedures.

Jonathan Morrison, Director of NHTSA, stated, “We support the safe development and deployment of autonomous vehicles,” but emphasized, “Balancing innovation and safety oversight is what will allow the U.S. to maintain leadership in the autonomous driving sector.” Meanwhile, under the current Trump Administration, work is also underway to revise standards related to brake pedals, wipers, lighting, and rearview mirrors.

Tesla's robo-taxi dedicated vehicle 'Cybercap'. Photo by Reuters and Yonhap News.

The Cybercap is one of the key projects in CEO Elon Musk's long-held ambition to take the lead in the autonomous vehicle market. The New York Times added that a significant portion of Tesla's market capitalization, which amounts to $1.4 trillion (approximately 1,885 trillion won), depends on the success of this robo-taxi venture.

However, in the current driverless taxi sector, Tesla appears to be lagging behind Alphabet’s Waymo. Waymo operates more than 3,500 vehicles in 11 U.S. cities, providing over 500,000 paid rides weekly, and has officially announced plans to expand to Munich, Germany. In contrast, it is estimated that Tesla has only 20 to 30 vehicles operating without supervisors in Austin. Tesla began service in Austin last year and is expanding into Florida and California.

Additionally, after the Cybercap’s launch event was held privately the previous night and the immediate initiation of a transportation authority investigation, investor enthusiasm was dampened. During the morning session, Tesla’s share price dropped by 6%.

Meanwhile, the Cybercap’s body is lightweight, thanks to the removal of driver controls. According to documents from the U.S. Environmental Protection Agency (EPA), its curb weight is approximately 1,400 kg—making it the lightest among Tesla vehicles—and its maximum output is 219 horsepower. The design also includes features for people with limited mobility: the seat height was lowered to accommodate wheelchair users, the trunk space was made larger to hold assistive devices, and braille was engraved on the grab handles.

This content was produced with the assistance of AI translation services.