Tesla’s Cybercab Has 169 Cars on Texas Roads. Now Comes the Harder Part.

Tesla has nearly quadrupled the number of its driverless Cybercab vehicles authorized for commercial use in Texas since launching its robotaxi service in Austin last month, but mixed passenger experiences and regulatory hurdles could complicate Chief Executive Elon Musk’s plans to rapidly expand the service.

Tesla had 45 Cybercabs authorized for commercial use in Texas when the vehicles were unveiled in Austin on Sept. 3, rising to 169 as of Friday, according to public records from the Texas Department of Motor Vehicles.

The bronze, two-seat vehicles are designed specifically for autonomous operation and have no steering wheel or pedals, as well as no rear or side-view mirrors or external door handles.

Passengers have reported mixed experiences since the launch, including long waits, incorrect pickup and drop-off locations and problems with the vehicles’ butterfly doors and trunks.

Tesla’s ability to expand its autonomous ride-hailing business is being closely watched by investors as the company seeks new sources of growth amid increasing competition in the electric-vehicle market.

Tesla shares have fallen about 18% this year, making the company the only so-called megacap technology stock among its peers to have posted a negative return over the period, according to the report.

Tesla reported better-than-expected third-quarter vehicle deliveries on Friday, sending its shares nearly 5% higher. Deliveries nevertheless fell 2% from a year earlier.

The company’s automotive revenue has declined on an annual basis for consecutive years as Chinese electric-vehicle makers including BYD and Xiaomi expand with lower-priced models, while Tesla has increased exports to major markets including Europe and Asia.

Tesla’s robotaxi push also faces a formidable competitor in Waymo, the autonomous driving unit of Alphabet.

Waymo operates in 15 U.S. markets and has announced plans to expand to another 15, according to its website. The company has also announced planned launches in London, Tokyo and Munich.

In Texas, Waymo had 1,154 autonomous vehicles authorized for commercial use as of Friday, including 359 of its newer Ojai models, according to state records.

Waymo says it conducts more than 500,000 paid rides a week and has completed 270 million fully autonomous miles of commercial driving in the United States. Its commercial U.S. fleet exceeds 4,000 driverless vehicles.

Tesla’s Texas robotaxi fleet also includes 420 Model Y vehicles equipped with its autonomous-driving systems that are not yet available to individual buyers.

Austin has become an important early market for autonomous ride-hailing companies, helped by Texas’ regulatory environment and the city’s large technology sector. Amazon’s Zoox is also testing autonomous vehicles there.

Tesla’s next challenge will be extending Cybercab operations beyond Austin while meeting regulatory and technical requirements.

The National Highway Traffic Safety Administration has opened an audit query following the Cybercab launch to assess whether the vehicles comply with federal safety standards. The agency initially required Tesla to respond by Sept. 30 to a series of safety questions, but Tesla obtained an extension, according to an NHTSA spokesperson.

Ethan McKanna, an Austin resident and former Tesla intern who has ridden in autonomous vehicles operated by several companies, said he has taken about 30 Cybercab rides.

McKanna, who created RobotaxiTracker.com to analyze autonomous-vehicle data, said he likes the Cybercab’s interior and driving performance.

With the Cybercab, McKanna said he likes having his “own space with access to a massive screen, media controls and apps,” and found the driving “very smooth.”

The “pick up, drop-off experience,” he said, was not yet refined and the butterfly doors were “less convenient” than conventional or sliding doors.

“There was so much demand that wait times were often like 45 minutes plus,” he said, referring to the period when the Cybercab first rolled out. Wait times have since fallen with more “equalized demand,” he said.

“Waymo’s been doing commercial operations for longer, so they’re just more mature with 24/7 service, better support, things like that,” McKanna said, adding that Waymo had some “harsh braking” issues during its early days in Austin.

There have been no significant reported safety incidents or collisions involving Cybercabs in Austin since the commercial launch. First responders, however, have raised concerns about how emergency crews would interact with vehicles that lack conventional driving controls and have unusual doors.

Austin Fire Captain Matt McElearney said Tesla had provided emergency guidelines and training to first responders, but he argued that broader regulation was needed.

McElearney said autonomous vehicles without steering wheels or pedals should provide another way for “public safety representatives to take control — move, steer, or shut down an AV — in both emergent or non-emergent events.”

He also said autonomous vehicles should have to “pass testing through the entire lifespan of the product” through a “dynamic certification” process because their performance can change following software bugs or updates.

Public acceptance remains another potential obstacle.

A September 2026 survey by Slingshot Strategies found that 50% of U.S. respondents would not feel comfortable riding in a robotaxi without a steering wheel or pedals. After respondents were told about the NHTSA investigation into Tesla’s Cybercab, 70% said the company should pause rides, according to the survey.

Tesla plans to expand its autonomous service to other Texas cities, including San Antonio and Dallas, as well as Nevada and Florida, according to the report.

Musk said in January at the World Economic Forum in Davos that Tesla’s robotaxis would be “very, very widespread” in the United States by the end of 2026.

The company has yet to reach that target. Tesla also has not obtained permits in California to operate its vehicles on public roads without humans at the wheel, even as Waymo’s robotaxis have become increasingly common in several California cities.

Analysts at Cantor said after Tesla’s latest delivery report that the autonomous vehicle opportunity could be significant for the company.

“Management previously said that once production ramps, it expects Cybercab to ultimately be the largest volume vehicle in its lineup,” the analysts wrote.

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