Tesla Launches Driverless Cybercab as NHTSA Opens Safety Investigation, Competition Intensifies
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Tesla Launches Driverless Cybercab as NHTSA Opens Safety Investigation, Competition Intensifies

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Tesla on Thursday launched its fully autonomous Cybercab in Austin, Texas, a vehicle lacking steering wheels, pedals, or mirrors, and began offering rides through its Robotaxi service. Hours later, the National Highway Traffic Safety Administration (NHTSA) announced an investigation into the vehicle’s compliance with federal safety standards, which currently require manual controls. Tesla has registered 45 Cybercabs in Texas. The launch follows years of promises from CEO Elon Musk regarding self-driving technology and comes as competitors like Amazon’s Zoox, Waymo, and Uber-Wayve are expanding their own robotaxi services.

The Cybercab’s debut was notably low-key, with Musk absent from the launch event, a fact observers found puzzling given his emphasis on robotics and AI as central to Tesla’s future. Wall Street reacted negatively to the event. While Tesla fans celebrated the launch, the company is now entering a more crowded market than it anticipated. Zoox recently began paid rides in Las Vegas and is expanding testing to Houston and San Diego, including service to and from the Las Vegas airport. Uber and Wayve launched autonomous rides in the UK, with plans to expand to 12 markets, including Tokyo, and Waymo has expanded its driverless rides to 14 U.S. cities, including Denver, where it will face snow conditions for the first time.

Tesla opted to self-certify the Cybercab as compliant with existing safety standards, a standard route for automakers. NHTSA is currently updating vehicle standards to accommodate driverless cars, including removing requirements for components like brake pedals, but those changes are not yet in effect. Zoox previously received an exemption from these standards, limiting its operations to 2,500 vehicles this year. The NHTSA investigation into Tesla follows precedent, and the company may continue operations while it is underway. Allianz is reportedly in talks to acquire AA, the U.K.-based roadside assistance organization, for £5 billion ($6.77 billion).

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