Tesla unveils self-driving 'Cybercab' in Austin

A taxi without a steering wheel or pedals: The electric car manufacturer Tesla presented a self-driving “Cybercab” on Thursday in Austin, Texas. The company presented the autonomous two-seater at an event in the Texas capital that was advertised as exclusive. As the Austin American-Statesman newspaper reported, event participants were the first to ride in the driverless cybercabs, which will be available to the public starting today.

The company said the first rides would initially be offered in “certain areas of Austin.” The prices should be dynamically based on demand and offer a “first-class experience at a second-class price,” it said. Tesla's AI boss Ashok Elluswamy said anyone could take a ride: "It's open to the entire public."

So far only limited use of Tesla robotaxis

Tesla boss Elon Musk published on his online service However, the company boss did not take part in the presentation in Austin, as participants reported.

For Musk, the model is a crucial step in making Tesla a dominant force in driverless cars. The multi-billionaire has been promising the early 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. According to the company, production started in April. 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.

Regulatory hurdles remain

However, there are regulatory hurdles preventing rapid expansion. A number of US states require vehicles to have a human attendant or driver on hand to take control if necessary. Cars without a steering wheel or pedals are taboo there. The US traffic safety authority NHTSA said it was in contact with Tesla and was reviewing the matter. In the important market of California, there is no approval for a robotaxi service or tests without a safety driver.

And Tesla is also 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. In collaboration with the driving service Uber, Waymo already offers self-driving taxis in eleven US cities, including San Francisco and Los Angeles. Musk's electric car company is currently only operating in Texas.