Tesla (TSLA) stock fell over 3% in pre-market trading on Friday after jumping 5.42% on Thursday. The decline comes as investors weigh Tesla’s limited Cybercab rollout in Austin, with the event drawing criticism over the lack of details on its wider deployment and new regulatory questions.
Tesla began offering limited public Cybercab rides in Austin after Thursday’s launch event. However, the event was not livestreamed, and the National Highway Traffic Safety Administration (NHTSA) said it is evaluating the rollout.
The launch is a big step for Elon Musk’s robotaxi plans. Tesla also said its robotaxi fleet has reached 1 million unsupervised miles. That is more than double the 380,000 miles reported about six weeks earlier.
NHTSA Is Looking Into Tesla’s Cybercab
The National Highway Traffic Safety Administration (NHTSA) is looking into Tesla’s Cybercab rollout because the vehicle has no steering wheel, pedals, or mirrors.
“NHTSA is in contact with Tesla and is evaluating the situation,” a spokesperson told Reuters.
The issue could make it harder for Tesla to quickly grow its Cybercab fleet. Texas records showed 45 Cybercabs among 420 Tesla autonomous vehicles registered in the state as of Wednesday. Waymo had 988 autonomous vehicles registered in Texas.
Tesla’s Cybercab is also very different from a normal car. It has two seats and 20.2 cubic feet of cargo space. The company removed the controls that a driver would normally need, including the steering wheel and pedals.
Tesla also kept Thursday’s launch event private and did not offer a public livestream. That left some investors wanting more details about how quickly the service can grow.
Tesla Bulls Still See a Big Robotaxi Opportunity
Tesla’s robotaxi plans remain central to the long-term bull case for the stock. The company is moving from its existing Model Y-based Robotaxi service to a vehicle built specifically for driverless operation.
Deepwater Asset Management Managing Partner Gene Munster expects Tesla to add 300 Cybercabs in Austin over the next month. He said, “That’s just the start.”
The key issue now is how quickly Tesla can expand beyond Austin. The company will need to grow its fleet while meeting regulatory requirements. It also needs to show that the vehicles can operate safely without human controls.
Is Tesla a Good Stock to Buy?
On Wall Street, analysts have a Moderate Buy consensus on Tesla stock. According to TipRanks, TSLA stock has received 11 Buys, 14 Holds, and three Sells assigned in the last three months. The average price target for Tesla shares is $377.08, suggesting a potential upside of 0.19% from the current level.
