Tesla shares fell 6.5% on Friday, more than erasing the previous day’s gain, after the Cybercab launch the market had spent a month anticipating arrived with several questions not answered.
The National Highway Traffic Safety Administration (NHTSA) then opened an investigation into how Tesla certified the vehicle.
The stock gapped down 3.9% at the open to $361.87 and was trading at $351.92 as of publication time, down $24.45 from Thursday’s close of $376.37.
That close had been a 5.4% gain to the highest level in more than a month.
Friday’s fall leaves the shares 1.4% below Wednesday’s $357.01 — lower than before the rally began — and 8.4% below Thursday’s intraday high of $384.04.
What the Event Was
Tesla presented the production Cybercab at an invitation-only gathering in Austin on Thursday evening, where attendees were able to ride in the two-seat vehicle, which has no steering wheel, pedals or mirrors.
Unlike previous product events the company did not livestream it, and Musk did not appear. Several Tesla executives gave a presentation; the public saw the event through attendees’ posts on X.
The company did not disclose how many Cybercabs would enter service or when.
Texas registration records show 45 Cybercabs registered to Tesla’s robotaxi entity as of Wednesday, within a total Texas fleet of about 420 vehicles, most of them Model Ys. Waymo has nearly 1,000 vehicles registered in the state.
As of Thursday night, users of Tesla’s ride-hailing app could not specifically request a Cybercab.
The Regulatory Question
Federal safety standards generally require a steering wheel, brake pedal and mirrors.
Tesla had not filed for an exemption as of Wednesday, and the agency had said it was evaluating the Austin rides.
On Friday that became a formal audit query.
The agency said it was opening the investigation to examine the process and technical data on which Tesla relied when it self-certified the Cybercab as compliant with all federal motor vehicle safety standards. It conducts such investigations, it said, when “certified vehicles appear to not adhere to these requirements.”
Tesla registered the 45 Cybercabs under Texas Senate Bill 2807, the self-certification law that took effect in late May, and the company’s route to public roads has rested on that state framework rather than on a federal exemption.
What Is Still Ahead
Third-quarter deliveries land in the second day of October, and the next earnings report is scheduled for the window of October 20 to 26.
Underneath, the quarter the shares have been running on was mixed.
Revenue of $28.2 billion on record deliveries of 480,126 vehicles beat estimates, but non-GAAP earnings of $0.33 missed consensus, automotive margin narrowed, and the company guided to about $25 billion of capital expenditure this year on Optimus and AI infrastructure.
