Tesla (TSLA) Stock Trades Down, Here Is Why

Tesla Inc. (TSLA) shares dropped 6.40% after launching its Cybercab service in Austin. The NHTSA is investigating whether Tesla properly certified the vehicle, which lacks conventional controls. Tesla has 420 autonomous vehicles registered in Texas, 45 of them Cybercabs. The company did not announce when it will start charging fares.

The National Highway Traffic Safety Administration is investigating Tesla's new steering-wheel-free Cybercabs in Austin, Texas, to determine compliance with federal safety rules. Tesla stock fell over 5% to $357.38 on the news. The company claims it self-certified the vehicles, but regulators are auditing the process. Tesla plans a national rollout of the driverless taxi service.

U.S. stock indexes fell slightly Friday after a stronger-than-expected jobs report, with Nasdaq down 0.3%, S&P 500 down 0.4%, and Dow down 0.5%. August payrolls rose 162,000, increasing Fed rate hike expectations. Apple (AAPL) weighed on indexes due to production issues, while Tesla (TSLA) dropped 6.4% after Cybercab service launch. Micron (MU) plans to double AI memory production by 2027, boosting memory stocks.

Tesla unveiled its fully autonomous Cybercab at an event in Austin. The stock initially rose 7% but fell 6% after regulators announced an investigation into its safety certification. Analysts remain skeptical, with some maintaining 'Sell' ratings. Cybercabs will be available in limited areas starting Friday.

Tesla's Cybercab debut in Austin was low-key, with only 45 vehicles registered. NHTSA is reviewing its design for compliance with safety rules, as it lacks a steering wheel and pedals. Tesla claims the vehicle meets all standards. The probe follows a similar review of Amazon's Zoox. Tesla shares fell over 6% on the news. Analysts had set expectations for 25-50 Cybercabs to consider the event a success.

Tesla launched its Cybercab for robotaxi service, sparking a federal safety probe. The U.S. NHTSA is investigating the self-certification process of the 1,000 vehicles. Details were scarce, and Tesla shares fell 4.6% on Friday. Analysts noted the lack of growth targets and streaming. The Cybercab lacks traditional driver controls, raising regulatory questions.