Federal probe opens into Tesla Cybercab safety compliance

The National Highway Traffic Safety Administration has launched an investigation into whether Tesla’s driverless Cybercab complies with federal vehicle safety standards. The audit query, as it is formally designated, will examine the data and processes Tesla used to determine that its vehicles meet existing regulations without requiring a special exemption.

This regulatory scrutiny emerged shortly after the electric vehicle manufacturer hosted hundreds of enthusiasts in downtown Austin for test rides in the two-seater cars, which lack steering wheels and brake pedals. Tesla intends to deploy these vehicles on its Robotaxi ride-hail network, currently operating in several cities across Texas and Florida. The company has maintained that it does not need an exemption from federal rules because its vehicles adhere to all current safety requirements.

The agency is concurrently updating eight vehicle standards to facilitate the deployment of driverless cars, including removing mandates for components such as brake pedals, windshield wipers, and rearview mirrors. Until these new regulations take effect, however, existing years-old standards remain in force. Other manufacturers with similarly unconventional vehicles have been instructed to apply for exemptions before commencing passenger operations. Amazon’s subsidiary Zoox secured the first of these waivers earlier this year, limiting its fleet size to 2,500 vehicles annually.

Jonathan Morrison, the NHTSA administrator, stated that while the agency supports the safe development of automated vehicles, it must ensure all laws are followed. Ann Carlson, a former acting administrator and current law professor at UCLA, described the investigation as an indication of significant frustration with Tesla’s approach. She noted that the agency expects developers to follow the exemption process established in previous cases.

Federal investigations can lead to mandatory changes in vehicle design or processes, as well as enforcement actions including civil penalties. In 2023, Volvo Group North America paid $130 million in penalties following a review of its recall procedures and agreed to three years of third-party oversight. Elon Musk has previously stated that Tesla should be viewed primarily as a robotics and autonomous vehicle company rather than a traditional automaker. Current state data indicates that 45 Cybercabs are included in the Texas fleet, with the company planning to deploy millions annually.