Tesla introduces Cybercab – but regulatory hurdles and lagging behind Waymo remain

Elon Musk and Tesla are currently still well behind the market leaders when it comes to autonomous driving. With the Cybercab, the company wants to catch up with Waymo. But this raises several problems.

The US electric manufacturer Tesla has presented its new Cybercab in the state of Texas and started its first trips. The rides will be offered in “certain areas of Austin,” the company said. The US traffic safety authority NHTSA said it was in contact with Tesla and was reviewing the matter.

The company presented the autonomous two-seater at an event in the Texas capital. However, company boss Elon Musk did not take part in the event, as participants reported. The managers' explanations about the pricing model, production and technology only took about a quarter of an hour.

The prices should be dynamically based on demand and offer a “first-class experience at a second-class price,” it said. Several Tesla investors and social media personalities expressed enthusiasm for the Cybercab's look and feel and posted videos of their rides after the event.

For Musk, the model is a crucial step in making Tesla a dominant force in driverless cars. Analysts and investors see autonomous driving as a key future business because Tesla is increasingly exposed to competition from Chinese manufacturers in the electric car market. The billionaire has been promising the imminent breakthrough of his self-driving cars for years, but has repeatedly failed to meet his ambitious goals for market launch.

Tesla currently operates a limited robotaxi service with Model Y vehicles. In the future, the Cybercab, which does not have a steering wheel or pedals, will become the main model in this fleet. Tesla's AI boss Ashok Elluswamy said anyone could take a ride: "It's open to the entire public." According to the company, production started in April.

Regulatory hurdles stand in the way of rapid expansion. U.S. federal law limits the number of vehicles without steering wheels and pedals that a manufacturer can sell. In the important California market, Tesla does not have approval for a robotaxi service or tests without a safety driver. Tesla is also still lagging behind the competition when it comes to fleet size: According to Texas authorities, there are currently 420 autonomous Tesla vehicles registered there, including 45 cybercabs. Alphabet subsidiary Waymo, the current market leader in driverless taxis in the US, has 988 registered vehicles in the state.