Tesla has started testing a production version of its Cybercab robotaxi in Austin, Texas, equipped with only two seats and no steering wheel or pedals, with a safety monitor present during early trials. The move comes as the National Highway Traffic Safety Administration (NHTSA) prepares to finalize a proposal that would allow vehicles designed exclusively for autonomous driving to operate without traditional driver controls.

Why Is Tesla Testing a Steering Wheel-Free Vehicle Now?

The timing of Tesla's Cybercab testing aligns with a significant regulatory shift. Last week, NHTSA revealed a proposal that would eliminate the mandate for brake pedals in "vehicles designed to be driven exclusively by automated driving systems." The proposal is currently in its public comment period but is expected to be finalized later in 2026. This regulatory green light removes a major hurdle that has prevented Tesla from deploying its purpose-built robotaxi at scale.

Tesla has been testing prototype versions of the Cybercab equipped with steering wheels and pedals across multiple U.S. cities in recent weeks, and the company has been parking hundreds of vehicles in parking lots, fueling speculation about an imminent large-scale launch. The shift to a steering wheel-free design signals that Tesla is preparing for that next phase.

How Does Tesla's Approach Differ From Waymo's?

Tesla and Waymo are pursuing fundamentally different strategies in the robotaxi race. Tesla is building both the vehicles and the driving software in-house, which executives argue will give the company a significant cost advantage. Waymo, by contrast, relies on partnerships with vehicle manufacturers like Jaguar and Zeekr to supply its robotaxis.

The two companies also differ in their sensor technology. Tesla is attempting to achieve full autonomy using only cameras, while Waymo employs a more complex suite of sensors, including lidar and radar. This difference in approach has real-world implications for both the vehicles' capabilities and their visibility on the road. Waymo's sensor-laden vehicles are far more noticeable when they encounter problems, whereas Tesla's lightly modified Model Y SUVs have had growing pains that have largely flown under the radar.

What Challenges Has Each Company Faced?

Both robotaxi leaders have encountered significant obstacles as they scale their operations. Waymo's vehicles have struggled with several edge cases that have required recalls. The company's robotaxis cannot currently take highways because they have difficulty maneuvering around construction zones. Additionally, Waymo's vehicles have had problems avoiding flooded areas during heavy rain and have struggled to drive legally around school buses.

Tesla's Austin robotaxi network has also experienced growing pains, including minor crashes, at least two of which were caused by remote operators. However, because Tesla is using consumer Model Y SUVs rather than purpose-built robotaxis, these incidents have attracted less public attention than Waymo's more visible struggles.

Steps to Understanding the Robotaxi Visibility Challenge

• Vehicle Design Impact: Waymo's distinctive sensor-laden I-PACE SUVs and light blue Zeekr vans are immediately recognizable on the road, making every operational issue highly visible to the public and media.
• Tesla's Advantage: Tesla's use of consumer Model Y vehicles allows the company to test at scale with less public scrutiny, though this will change dramatically once the gold-colored Cybercabs hit the road.
• Spotlight Effect: Rolling out purpose-built, two-seater Cybercabs will put significantly greater spotlight on Tesla's robotaxi network, making both its struggles and successes much more visible than they have been with Model Y vehicles.

The introduction of the Cybercab represents a turning point in how the public will perceive Tesla's autonomous driving progress. Unlike the relatively inconspicuous Model Y robotaxis currently operating in Austin, the distinctive gold-colored Cybercabs will be impossible to miss. This increased visibility will amplify both Tesla's successes and any operational failures, putting the company under the same level of scrutiny that Waymo has faced as it scaled.

Tesla has spent years promising that it would be able to build a fully autonomous car, but it has yet to deploy one at scale. The Austin robotaxi service, which launched roughly a year ago, represents the closest the company has come to that goal, though its size has fluctuated over time. The Cybercab testing marks a critical juncture in whether Tesla can finally deliver on that long-standing promise.

The regulatory environment is now moving in Tesla's favor. With NHTSA poised to eliminate brake-pedal requirements for autonomous vehicles, one of the final technical and regulatory barriers to deploying the Cybercab at scale is about to disappear. Whether Tesla can execute on that opportunity, and whether the company's camera-only approach can match Waymo's more sensor-intensive system in real-world conditions, will determine the next chapter of the robotaxi race.