Tesla's Cybercab faces legal hurdles before launch in the U.S

Tesla's Cybercab, a two-person robotaxi, is not currently street-legal in the U.S. due to regulatory restrictions. The National Highway Traffic Safety Administration prohibits vehicles without steering wheels and driver controls from operating on public roads. CEO Elon Musk announced plans for production to start by late 2026, but the Cybercab's self-driving technology is still at Level 2 autonomy. It requires a human driver to remain alert, while Musk described it as capable of Level 5 autonomy. Even if approved, Tesla would be limited to producing only 2,500 Cybercabs annually unless Congress changes the regulations. Following the Cybercab's unveiling, Tesla's stock dropped over 9%, reflecting investor concerns about the vehicle's future viability.