US regulator opens safety investigation as Tesla launches driverless taxis

Federal regulators have launched an investigation into whether Tesla's new driverless taxis, known as Cybercabs, meet federal safety standards in the US. The National Highway Traffic Safety Administration is examining whether Tesla fully complied with rules when deploying its Cybercabs in Austin, Texas, which lack traditional steering wheels, mirrors, and brake pedals. Elon Musk launched the service on Thursday with a launch event for invitees, but Tesla stock fell by more than 5% to $357.38 in early trading on Friday after news of the probe was announced. The investigation is focused on whether Tesla's self-certification procedure, which relied on technical data, was sufficient to ensure the Cybercabs meet required standards. The agency has said it will conduct an audit to examine the process and technical data used by Tesla for certification. This development comes as Tesla prepares to launch its driverless taxi service in other cities, with Waymo currently leading the market in terms of number of cabs deployed and trips completed.