Elon Musk launched dozens of self-driving Cybercabs without steering wheels or brake pedals onto the streets of Austin, Texas, on Thursday. The move signals a significant bet on public acceptance of rides where passengers have no direct control, even in emergencies.
The gold-colored Teslas are part of an initiative to expand the company's autonomous taxi service to additional cities. This rollout occurs as Tesla faces challenges with declining vehicle sales, though its stock saw a more than 5% increase on Thursday amid hopes for the new service's reception.
Tesla teased the steer- and pedal-free design on its social media platform X prior to the launch. Musk himself shared an image of a Cybercab above the Austin skyline, describing it as a "Storm of Cybercabs."
Technological and Competitive Landscape
Tesla's Cybercab service enters a market where it trails autonomous driving leader Waymo in both deployed vehicles and completed trips. To compete, Tesla must demonstrate the safety and reliability of its camera-only system, which contrasts with rivals like Waymo and Amazon's Zoox that utilize radar and lidar in addition to cameras.
The company is also working toward a future where Tesla owners can offer their vehicles as taxis through a software update, a strategy that could significantly expand its autonomous fleet.
Public and Regulatory Hurdles
Despite technological advancements, convincing the American public of the safety of driverless cars remains a significant challenge. A February survey by the Pew Research Center indicated that 70% of U.S. adults expressed low comfort levels with riding in a driverless car. Separate 2025 Gallup polling showed increased skepticism regarding the safety of autonomous vehicles compared to previous years, with more Americans favoring human-operated cars.
Furthermore, public perception of Musk himself may influence adoption. A January Pew poll found that nearly 60% of U.S. adults hold a largely unfavorable view of him. Tesla's recent business performance, including a second consecutive annual decline in vehicle sales and a drop in profits, has led to its loss of the title as the world's best-selling electric vehicle maker to China's BYD. The company's stock has also been affected by past controversies linked to Musk's political stances.
Regulatory scrutiny also looms over Tesla's autonomous technology. While Tesla's existing robotaxi service in Austin, launched in June of the previous year, initially included safety drivers, the company now operates over 200 vehicles without them in several Texas and Florida cities. In contrast, Waymo operates more than 4,000 such vehicles across 14 cities. Tesla has not yet received approval for its partial self-driving software in most European Union countries, and in the U.S., regulators are investigating several crashes and incidents involving the software, including instances of Teslas running red lights or driving on the wrong side of the road. Investigations also cover potential failures to promptly report crashes.