Tesla has nearly quadrupled its authorized Cybercab fleet in Austin to 169 vehicles a month after launch, but mixed rider reviews and a federal safety inquiry now test the company's push to expand beyond its home city. Rivals including Alphabet's Waymo already operate thousands of driverless vehicles across 15 U.S. markets, raising the stakes for Tesla's robotaxi ambitions.
A month after Tesla's driverless Cybercab launched in Austin on September 3, the company has almost quadrupled the number of vehicles authorized for commercial service in Texas. The fleet grew from 45 to 169 vehicles. For Elon Musk's driverless ambitions to materialize, growth needs to accelerate further, and expanding beyond Austin is now the central challenge.
Mixed reviews and regulatory scrutiny
Riders have posted mixed reactions to the two-seater vehicles, which have no steering wheel, pedals, mirrors, or outside door handles. Complaints have included long wait times, pickups and drop-offs in the wrong place, and butterfly doors or trunks that close improperly. Ethan McKanna, an Austin resident who has taken about 30 Cybercab rides, said wait times were often like 45 minutes plus when the service first launched, though demand has since become more equalized.
Beyond rider experience, the National Highway Traffic Safety Administration opened an audit query after the launch to check the vehicles' compliance with federal safety standards. NHTSA originally ordered Tesla to respond by September 30, but the company obtained an extension. Austin Fire Captain Matt McElearney said first responders want national or state rules requiring a way to manually take control of a robotaxi in an emergency, since Cybercabs lack conventional driving controls.
Investors watching robotaxi growth
The stakes are high for Tesla's stock, which is down 18% this year, the only megacap tech stock to post negative returns in 2026. The core auto business also faces a 2% year-over-year delivery decline amid rising competition from Chinese EV makers. Still, Tesla's third-quarter deliveries beat expectations and lifted the stock almost 5% on Friday.
Analysts at Cantor wrote that Tesla management has said Cybercab is expected to ultimately become the company's largest-volume vehicle once production ramps up. Meanwhile, Alphabet's Waymo continues to outpace Tesla's driverless footprint, operating in 15 U.S. markets with 1,154 autonomous vehicles authorized in Texas alone and conducting more than 500,000 paid rides weekly nationwide.
Musk's next step is expanding Cybercab across Texas cities such as San Antonio and Dallas, as well as into Nevada and Florida. In California, Tesla still hasn't obtained permits to run driverless vehicles on public roads.
Source: US Top News and Analysis
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