Tesla Stock Falls 6% as NHTSA Probes Its Cybercabs

Tesla began offering paid rides in its Cybercab, a fully autonomous vehicle without a steering wheel, designed for passenger transport. The Cybercab, produced in Austin, Texas, is not yet available to the general public. Tesla's stock, valued at $1.5 trillion, relies on its dominance in autonomous vehicle technology. Analysts note that a broader rollout could impact Tesla's stock performance. The company faces competition from Waymo and regulatory challenges.

Tesla Inc. shares dropped 6% after the Cybercab launch drew scrutiny from U.S. regulators, who opened a probe into its compliance with safety standards. The event, lacking details and media access, disappointed investors. Tesla aims to expand its robotaxi fleet, but faces regulatory and market-readiness challenges. Analysts noted the lack of growth targets and direct communication from the company.

Tesla (TSLA) shares fell 6% after U.S. regulators announced an evaluation of its new Cybercab, citing design concerns. The drop followed a launch event that disappointed retail investors. Tesla is down 19.3% year-to-date, trading 27.8% below its 52-week high. The NHTSA is examining the vehicle's lack of standard safety features.

Tesla has launched its Cybercab in Austin, offering driverless rides through its Robotaxi app. The Cybercab is fully autonomous, with no steering wheel or brake pedal. Tesla is authorized to operate 314 driverless cars in Texas, including 45 Cybercabs. The NHTSA has opened an investigation into the certification process and technical data of the Cybercab.

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.