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Market Chatter: Tesla Prepares Driverless Taxi But Fails to Apply for Regulatory Exemptions
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Market Chatter: Tesla Prepares Driverless Taxi But Fails to Apply for Regulatory Exemptions
Mar 12, 2026 4:09 AM

06:48 AM EDT, 03/12/2026 (MT Newswires) -- Tesla (TSLA) is staffing up and preparing new machines at its Austin, Texas Giga plant to produce hundreds of its new autonomous Cybercab, the Wall Street Journal reported Thursday.

The Cybercab lacks a steering wheel, pedals and side mirrors. But Tesla has not yet applied for a mandatory exemption to produce more than 2,500 vehicles from meeting federal requirements, which include steering wheels, pedals, and side view mirrors, the paper reported, citing a spokesman for the National Highway and Transportation Safety Authority.

Failure to comply with regulations or gain an exemption could trigger a recall order, legal battles, or major fines, the report said.

The first Cybercabs were produced last month, the report said. The vehicle, which could cost less than $30,000, is designed to operate with full self-driving software and is meant to be used for ride-hailing services and taxi fleet operators, as well as consumers, the report said.

Tesla and the NHTSA did not immediately reply to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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