Tesla's ambitious move to introduce a steering-wheel-free prototype, the Cybercab, faces significant regulatory challenges in the U.S. The National Highway Traffic Safety Administration (NHTSA) disclosed that Tesla has not yet applied for an exemption for the Cybercab to legally operate on public roads. Experts highlight that beyond federal regulations, obtaining state-level permissions poses a greater hurdle, particularly in California, where it could take years for Tesla to secure the necessary approvals.
Recently, during the inaugural presentation of Tesla’s Robotaxi project, CEO Elon Musk outlined plans for the production of the Cybercab, projecting mass production by 2027. However, federal law mandates that vehicles lacking steering wheels or other required controls must be approved by NHTSA before they can be road-ready. Even if Tesla secures this clearance, the rollout will be restricted to a few thousand units each year, as NHTSA annually caps such exemptions to 2500 vehicles.
This limitation underscores the niche market the Cybercab would occupy, considering Tesla's global deliveries reached approximately 1.81 million vehicles last year, with the third quarter alone accounting for 463,000 units. As a result, the contribution of the Robotaxi service to Tesla's overall production may be minimal.
In addition to federal challenges, state regulations present further obstacles. While companies like Waymo and Cruise have deployed autonomous taxis in California, Tesla has not yet applied for permits necessary for testing or deploying its autonomous technology in the state. The California Department of Motor Vehicles confirmed that Tesla has permits to test with human safety drivers but has not reported using this technology since 2019.
Mary Cummings, an engineering professor and former NHTSA advisor, emphasized the greater difficulty of obtaining state permits for Tesla, predicting the process could take years, especially in California.
Post-Robotaxi Day, media commentators noted a lack of detailed plans from Musk regarding Tesla's autonomous taxi business model, market projections, and regulatory strategy. Critics observed that Musk skirted the regulatory challenges during his presentation, offering no substantial insights into how Tesla plans to overcome these hurdles, which are magnified by public safety concerns following several autonomous vehicle incidents.
