In the month following the launch of Tesla's Cybercab in Austin, the number of driverless, bronze-colored two-seater vehicles approved for commercial use by the company in Texas nearly quadrupled. For Elon Musk, to achieve his ambitions, the growth must accelerate.
These uniquely designed driverless vehicles lack a steering wheel, pedals, rearview mirrors, or exterior side mirrors, as well as exterior door handles. Since their launch on September 3rd, paid passengers have had mixed reviews of them, sharing videos and posts online. Criticisms mainly include long waiting times, incorrect pick-up and drop-off locations, and technical issues such as abnormal closing of the vehicle's butterfly doors or trunk.
Enhancing autonomous driving technology and rapidly expanding Robotaxi services are key to Tesla reigniting investors' enthusiasm. For a long time, automobile sales have been weak, and Tesla's stock price has performed poorly on Wall Street this year, declining by 18% in total, making it the only large-cap tech stock that has not provided positive returns for investors.
Last Friday, Tesla reported that its car deliveries in the third quarter exceeded expectations, driving its stock price up by nearly 5% for a time. However, the company's deliveries still decreased by 2% year-on-year. Tesla's core automotive business has seen declining revenue for several consecutive years, and it also faces competition from Chinese electric vehicle manufacturers such as BYD and Xiaomi. These companies are accelerating their exports to key Tesla markets in Europe and Asia, launching cheaper and more innovative models.
Meanwhile, Waymo, a subsidiary of Alphabet, continues to expand into new cities. According to the company's website, Waymo has currently entered 15 markets in the United States, with another 15 markets in the planning stage. The company has also announced plans to carry out international business in London, Tokyo, and Munich.
As of last Friday in Texas, Waymo, 1,154 autonomous vehicles were approved for commercial use, including 359 units of the new Ojai model, which feature a low-step design with sliding doors. Waymo completes over 500,000 paid rides per week and has accumulated 270 million miles of fully autonomous commercial driving in the United States. Currently, there are more than 4,000 driverless vehicles in commercial operation in the U.S.
According to public records from the Texas Department of Motor Vehicles, when Tesla launched Cybercab in Austin, it was authorized to have 45 vehicles for commercial use in Texas; as of last Friday, this number had risen to 169.
Austin, where Tesla's headquarters are located, is currently the only city where Cybercab is being operated as part of an autonomous ride-hailing service. Tesla's fleet in Robotaxi also includes 420 vehicles equipped with Tesla's autonomous driving system of Model Y model, but these vehicles have not yet been made available to individual buyers.
Due to relatively lax state-level regulations, coupled with the active tech community in this state capital city, Austin has become a popular market for early testing of robotic taxis. Amazon's Zoox is also conducting tests in Austin.
Expansion Barriers
Stepping out of Austin is the next challenge faced by Tesla Cybercab.
In addition to technical issues, the company also faces some potential regulatory obstacles in its expansion. The National Highway Traffic Safety Administration (NHTSA) of the United States launched so-called inquiry proceedings after the Cybercab went online, in order to confirm whether these vehicles meet federal safety standards.
NHTSA Originally, Tesla was required to respond to a long list of safety issues by September 30th, but a spokesperson for the institution told CNBC via email that the company had been granted an extension.
Austin resident and former Tesla intern Ethan McKanna told CNBC that he has ridden various autonomous vehicles that are open to the public in this city.
This 20-year-old McKanna is currently a sophomore majoring in computer science at Texas A&M University. He has also created a website named RobotaxiTracker.com, which uses machine learning to analyze data streams from traffic cameras and other public records to showcase the operation of autonomous driving services in American cities.
McKanna said that he has taken the Cybercab about 30 times and has been using its vehicles since it made its debut in Austin in Waymo 2024. When talking about the Cybercab, he mentioned that he likes having "his own space, with the ability to use a large screen, media controls, and applications," and found the riding experience to be "very smooth."
However, he said that the "pick-up and drop-off experience" is not yet mature enough, and the butterfly doors that open outward are "not as convenient as traditional car doors or sliding doors." He also mentioned that this kind of experience requires patience.
"At that time, the demand was so high that waiting times often exceeded 45 minutes," he said when discussing the situation when Cybercab was first launched. He mentioned that in recent weeks, as "the demand has become more balanced," the waiting times have decreased.
“Waymo has been in commercial operation for a longer time, so they are more mature in terms of 24-hour service and better support,” said McKanna, and added that Waymo also encountered some ‘braking sudden’ issues in its early days in Austin.
Since its commercial debut on Cybercab, Austin has not reported any major safety incidents or collisions involving this model. However, emergency responders are concerned about the lack of manual driving control mechanisms and the unique door design of the Cybercab.
Austin Fire Chief Matt McElearney stated in an interview with CNBC that although Tesla has provided first responders with detailed emergency response guidelines and comprehensive training on how to handle Cybercab and Model Y Robotaxi vehicles in various situations, this is not enough.
McElearney said that he hopes that autonomous vehicle regulatory requirements at the state or federal level, for robot taxis that do not have steering wheels or pedals, must provide other means to allow "public safety representatives to take over in emergency or non-emergency situations – to move, steer, or turn off the autonomous vehicle."
He also added that since vehicle performance can change due to software vulnerabilities or updates, autonomous vehicles should undergo a kind of "dynamic certification" process and be continuously "tested" throughout the entire lifecycle of the product.
Tesla did not immediately respond to requests for comment.
There are also widespread security concerns among the public.
According to a survey in Electric Vehicle Intelligence Report in September 2026 by Slingshot Strategies, 50% of American respondents stated that they would not feel comfortable riding in a robot taxi without a steering wheel or pedals. The survey also showed that after learning that NHTSA was investigating Tesla's Cybercab, 70% of people hoped that the company would suspend its ride-hailing service.
If Musk wants to successfully bring Tesla into the era of autonomous driving, he needs to change this sentiment. His next step in becoming a major player in this market will be to expand in cities such as San Antonio and Dallas in Texas, as well as in Nevada and Florida. In these areas, autonomous driving companies can take advantage of the warm weather and favorable state-level regulations.
In January this year, Musk stated at the World Economic Forum in Davos that by the end of 2026, the company's robot taxis would be "very, very common" in the United States. However, this has not yet come to fruition. In California, Waymo can already be seen in many cities, yet Tesla still does not have permission to operate vehicles on public roads without human drivers.
After Tesla released its delivery data on Friday, analysts from Cantor emphasized the scale of this opportunity.
They wrote: "Management previously stated that once production begins to climb, Cybercab will ultimately become the best-selling model in their product line."
