A month after its Austin debut, Tesla has nearly quadrupled the number of authorized Cybercabs in Texas, but the company must now navigate technical friction and regulatory scrutiny to scale its driverless ride-hail service. The fleet grew from 45 vehicles to 169 authorized for commercial use, according to state records. Currently, the robotaxi operates exclusively in Austin, supported by an additional 420 Model Y vehicles equipped with automated driving systems.

Early passengers have praised the smooth ride and the vehicle's large screen with media controls. The unusual design lacks a steering wheel, pedals, mirrors, and traditional door handles. That absence of standard controls has drawn criticism. Riders reported lengthy wait times, incorrect pickup locations, and persistent issues with the butterfly doors and trunk failing to close properly.

"There was so much demand that wait times were often like 45 minutes plus," said Ethan McKanna, noting that demand has since equalized. Despite the teething problems, the service has not yet reported significant safety incidents or collisions. The lack of manual controls and unique door mechanisms, however, has raised alarms among emergency responders who worry about rescue operations.

Regulators are watching closely. The National Highway Traffic Safety Administration launched an audit query immediately after launch and extended Tesla's response deadline past Sept. 30. Public opinion also leans cautious. Recent surveys indicate 50% of U.S. respondents would not feel comfortable riding in a robotaxi without a steering wheel or pedals. When informed about the NHTSA investigation, 70% of those surveyed wanted Tesla to pause operations.

Tesla faces a crowded and rapidly expanding competitor in Waymo, which now operates in 15 U.S. markets and runs over 500,000 paid rides weekly. Tesla plans to expand into San Antonio, Dallas, Nevada, and Florida, leveraging warmer climates and favorable state laws. The company still lacks permits for driverless service in California, where Musk previously stated the robotaxis would become widespread by the end of 2026. Wall Street remains focused on the long-term potential, with analysts at Cantor noting that management expects the Cybercab to ultimately become the largest volume vehicle in Tesla's lineup,