# Tesla Advances Autonomous Cybercab and AI Chip Plans Amid Regulatory Scrutiny

- URL: https://stocks.freetheai.org/news/tesla-advances-autonomous-cybercab-and-ai-chip-plans-amid-regulatory-scrutiny-0dd6a9
- Published: 2026-10-13T07:00:00Z
- Category: company_news; sentiment: mixed; impact: high
- Symbols: [NASDAQ:TSLA](https://stocks.freetheai.org/symbols/NASDAQ-TSLA)
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Tesla, Inc. (TSLA) has begun producing its autonomous Cybercab in Austin, Texas, and is currently transporting paying passengers, though vehicle output remains constrained by 4680 battery cell availability. Meanwhile, United States regulators are scrutinizing the driverless expansion, specifically examining Cybercab certification issued without traditional steering wheels or pedals alongside general safety rule compliance. Additionally, a petition has raised concerns that Tesla Robotaxis may exceed posted speed limits in active school zones.

Despite regulatory scrutiny and product rebranding in Europe—where the driver-assistance feature was renamed Tesla Assisted Driving—software adoption remains strong. Over 55% of new North American deliveries now utilize Full Self-Driving subscriptions, boosting software revenue per vehicle. To support its technology infrastructure, Tesla is partnering with SpaceX to build an in-house semiconductor manufacturing facility called Terafab for advanced artificial intelligence chips. Shares of Tesla, Inc. recently traded down 1.22% at $378.

Investors and market observers will monitor regulatory decisions across key markets in the coming months. Slovakia is expected to become the ninth European nation to clear Tesla's driver-assistance software, though broader European Union clearance has been delayed until at least December. Furthermore, battery production bottlenecks for the Cybercab and regulatory evaluations of driverless vehicles will remain key focal points for the company.

## Key points

- Tesla, Inc. (TSLA) started driverless Cybercab production in Austin and is serving paying customers, though 4680 battery availability limits output.
- U.S. regulators are reviewing Tesla's autonomous expansion, focusing on Cybercab certification without pedals or steering wheels and safety compliance.
- Full Self-Driving subscription adoption on new North American deliveries exceeds 55%, driving higher software revenue per vehicle.
- Tesla and SpaceX plan to build a Terafab facility to manufacture advanced AI chips in-house, with TSMC potentially subleasing space.
- European Union driver-assistance software approval is delayed until at least December, though Slovakia is expected to clear the software soon.

## Questions and answers

### Where is Tesla producing the Cybercab and is it currently running?

Tesla started Cybercab driverless production in Austin and is currently carrying paying passengers. However, vehicle output is currently limited by the availability of 4680 battery packs.

### Why are U.S. regulators reviewing Tesla Cybercabs?

Regulators are reviewing Tesla's driverless expansion to check safety rule compliance and evaluate certification granted for vehicles lacking steering wheels and pedals. Additionally, a petition raised concerns about Robotaxis exceeding school-zone speed limits.

### When will Tesla software be approved in Europe?

Slovakia is expected to become the ninth European country to approve Tesla's driver-assistance software, but broader Europe-wide approval has been delayed until at least December.