Tesla is gearing up to expand its Cybercab robotaxi service beyond its initial launch point in Austin, Texas, aiming to deploy the shiny gold, two-seater autonomous vehicles in new U.S. markets starting with Dallas in November. The company’s CFO, Vaibhav Taneja, expressed Tesla’s broader ambition to dominate terrestrial transportation, potentially expanding beyond passenger cars in the future. Currently, Tesla operates robotaxi fleets using Model Y SUVs in Dallas, Houston, Miami, Orlando, and Tampa, while preparing to sell Cybercabs to fleet operators by the end of this year.

Despite the bold rollout plans, Tesla has been tight-lipped about the financial performance of its robotaxi business. CEO Elon Musk indicated that the ride-hailing arm won’t have a significant impact on Tesla’s financials until mid-2027. Tesla also revised how it reports robotaxi activity by switching from “cumulative paid robotaxi miles” to “cumulative unsupervised robotaxi miles,” which includes both paid and unpaid rides. This change reflects Tesla’s strategy to scale the service cautiously, focusing on regulatory approvals and technological readiness.

A significant regulatory hurdle looms over Tesla’s Cybercab deployment, as the National Highway Traffic Safety Administration (NHTSA) opened an investigation into whether the vehicle meets Federal Motor Vehicle Safety Standards. The Cybercab lacks traditional controls like brake pedals and side mirrors, which it self-certifies as compliant based on anticipated regulatory changes. These investigations could influence Tesla’s ability to legally operate or sell Cybercabs, though proposed changes to the rules might eventually ease these requirements for autonomous vehicles.

Tesla executives highlighted that technical challenges remain along with regulatory ones. Ashok Elluswamy, the head of Tesla’s autonomy division, explained that expansions in robotaxi operating hours and coverage are driven by advancements in AI software capabilities rather than regulations alone. Tesla aims to safely extend the Cybercab’s operational conditions, including highway driving, by the end of 2026. Meanwhile, Tesla plans to start selling the Cybercab to third-party fleet owners before releasing a fully autonomous version of its Full Self-Driving package to Tesla owners in mid-2027.