Tesla's Cybercab fleet in Texas grew from 45 to 169 authorized vehicles in its first month of commercial operations in Austin, but mixed passenger reviews, federal safety scrutiny, and a dominant rival in Waymo underscore the challenges ahead for the driverless ride-hail service.
Tesla's Cybercab has nearly quadrupled its authorized commercial fleet in Texas since launching in Austin on September 3, reaching 169 driverless vehicles as of October 3, according to Texas Department of Motor Vehicles public records — up from 45 at the time of the unveiling.
The growth comes after a first month marked by mixed passenger reviews, with riders posting complaints online about wait times that stretched beyond 45 minutes, pickups and drop-offs at incorrect locations, and technical difficulties involving the vehicles' butterfly doors and trunk closures.
Austin remains the only city where Tesla operates the Cybercab as part of its commercial driverless ride-hail service. The company's broader Robotaxi fleet in Texas also includes 420 Model Y vehicles equipped with Tesla automated driving systems, which are not available to individual car buyers.
The Cybercab itself is an unusual vehicle by conventional standards — it has no steering wheel, pedals, rearview or sideview mirrors, or exterior door handles. Riders enter through the butterfly doors and have access to a large interior screen with media controls and apps, according to passenger accounts.
Ethan McKanna, a 20-year-old sophomore studying computer science at Texas A&M University and former Tesla intern, told CNBC he has taken approximately 30 Cybercab rides in Austin. McKanna, who also runs RobotaxiTracker.com — a site that uses machine learning to analyze traffic camera data and public records on autonomous vehicle performance — described the drive quality as "very smooth" but said the pickup and drop-off experience "was not yet refined" and that the butterfly doors are "less convenient" than sliding or traditional doors.
McKanna noted that peak wait times have since come down from the initial surge. "There was so much demand that wait times were often like 45 minutes plus," he said, adding that more "equalized demand" in recent weeks has improved the situation. He contrasted Tesla's service with Waymo's longer track record in the city: "Waymo's been doing commercial operations for longer, so they're just more mature with 24/7 service, better support, things like that."
No significant safety incidents or collisions involving a Cybercab have been reported since the commercial launch. However, Austin Fire Captain Matt McElearney told CNBC that while Tesla provided detailed emergency guidelines and comprehensive instruction to first responders on handling both the Cybercab and Model Y Robotaxi vehicles, that training does not go far enough. McElearney said he would like to see national or state-level regulation requiring robotaxis without steering wheels or pedals to meet additional emergency-response standards.
Regulatory scrutiny at the federal level has also emerged. The National Highway Traffic Safety Administration initiated an audit query following the Cybercab launch to verify compliance with federal safety standards. NHTSA had originally ordered Tesla to respond to a detailed list of safety questions by September 30, but the company obtained an extension, an agency spokesperson told CNBC via email.
The pressure to scale is acute. Tesla's core automotive business has recorded consecutive annual revenue declines amid intensifying competition from Chinese electric vehicle makers including BYD and Xiaomi, which have been expanding exports into European and Asian markets. Tesla shares are down 18% this year, making it the only megacap technology stock to have failed to generate positive returns for investors in that period. On Friday, Tesla reported better-than-expected vehicle deliveries for the third quarter, lifting the stock nearly 5%, though deliveries still showed a 2% year-over-year decline.
By comparison, Alphabet's Waymo — Tesla's most direct robotaxi rival — had 1,154 autonomous vehicles authorized for commercial use in Texas as of Friday, including 359 of its newer Ojai models. Waymo is conducting more than 500,000 paid rides per week, has completed 270 million fully autonomous miles of commercial driving domestically, and now operates in 15 U.S. markets with 15 more planned, along with announced international launches in London, Tokyo, and Munich.
How quickly Tesla can resolve its technical shortcomings, satisfy federal regulators, and move the Cybercab into additional cities will be a central test of whether the Robotaxi business can offset continued weakness in its traditional vehicle sales.
Marc Sabatini is a staff writer at TechEchelon covering enterprise software, cybersecurity, and the regulatory beats that shape both. He focuses on the deal flow and policy decisions that move markets.
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