Tesla shares slide 6% after NHTSA opens Cybercab audit

Tesla Cybercabs stock tumbled 6% within an hour during morning trading on news of a compliance investigation.

The company deployed Cybercabs commercially onto Austin, Texas public streets yesterday. Later that day, the National Highway Traffic Safety Administration quietly launched a new probe, Audit Query AQ26002, covering up to 1,000 Tesla vehicles — a number that would comfortably encompass the company's Cybercab fleet of just a few dozen units.

Tesla defended its position, stating that “Cybercab is engineered to be the safest car on the road.”

The NHTSA does not usually pre-approve vehicles for adherence to Federal Motor Vehicle Safety Standards.

Manufacturers either self-certify compliance with FMVSS requirements or apply for a limited exemption in advance.

When the NHTSA suspects a vehicle falls short of FMVSS standards, it can investigate and seek corrective measures. In Tesla's case, the agency stated it "is opening this AQ to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues."

The Cybercab lacks a permanently attached steering wheel, brake pedal, accelerator pedal, and rearview mirrors. Tesla argues that these design choices give the car a futuristic appearance and are safe.

An Audit Query does not constitute an allegation of wrongdoing. The NHTSA's Cybercab notice does not announce a recall or any finding of noncompliance at this stage.

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Tesla self-certifies Cybercab, sought no exemption

Last year, the NHTSA unveiled three proposed rules covering automated vehicles lacking manual controls.

Its existing framework permits manufacturers to sell as many as 2,500 vehicles annually that do not fully meet traditional FMVSS.

Zoox provides a recent example of an NHTSA audit concluding without incident. The regulator closed its self-certification inquiry into Zoox in August 2025, issuing a set of requests that the company satisfied. Zoox subsequently obtained a formal, temporary FMVSS exemption for its commercial rollout, which began in July 2026.

Under this exemption, Zoox can legally operate vehicles on public roads.

Tesla took the more aggressive path. It initiated commercial deployment through self-certification rather than proactively seeking a special exemption.

Tesla did not immediately respond to Reuters' request for comment on the NHTSA audit.

By noon during Nasdaq trading, Tesla shares were trading 6.5% below yesterday's closing price, while the Nasdaq 100 index remained relatively flat at -0.5%.