Federal regulators investigate Tesla's driverless Cybercab safety compliance

Federal regulators have opened an investigation into whether Tesla's new driverless taxis adhere to safety standards, just one day after the company began offering rides in the vehicles.

The National Highway Traffic Safety Administration said it is looking into whether Tesla fully complied with federal rules when deploying its so-called Cybercabs in Austin, Texas, given that the two-seater vehicles lack steering wheels, mirrors or brake pedals typically required for road use.

Elon Musk, the head of the company, launched the Cybercab service in Austin on Thursday with fanfare, dispatching dozens of futuristic taxis onto city streets alongside a launch event for invitees.

Tesla stock fell by more than 5 per cent to $357.38 in early trading on Friday following news of the probe, reversing much of the financial progress made a day earlier.

Tesla did not respond immediately to a request for comment.

Prior to the launch, Tesla said it had relied on a self-certification procedure to ensure the Cybercabs complied, but the agency remains uncertain if the vehicles meet required standards.

In its filing, the agency said it will now conduct an audit to "examine the process and technical data" used by Tesla for certification.

The Austin service Thursday kicked off what Musk says will be a national rollout of a cheap, driverless taxi service that he promises to transform the way people travel.

Musk plans to integrate Cybercabs, which lack manual controls so passengers could take over in an emergency, into the company's existing cab service that up to now uses just normal Tesla vehicle.

That robotaxi network has been operating in Austin for more than a year, but has also begun offering rides in five other Texas and Florida cities.

The company is facing several federal investigation into the safety of its self-driving software.

One probe is examining the software’s role in several Tesla crashes in fog, sun glare and other low-visibility conditions, including one in which a pedestrian was killed.

Another is investigating dozens of incidents in which Teslas using partial self-driving software ran red lights or drove on the wrong side of the road, sometimes crashing into other vehicles and causing injuries.

A third is examining why Tesla apparently violated regulatory requirements by failing to report crashes promptly.