Tesla faces major roadblock that could impact the release of its long-awaited new vehicle: ‘Absolutely something bad happens’
As Tesla continues to struggle with falling sales and a number of competing startups, the brand could certainly benefit from a boost.
Theoretically the upcoming Cybercab could reignite consumer interest, but Forbes He noted that the struggling automaker faces a significant obstacle in this regard.
Electric vehicle manufacturer Tesla had an extremely difficult 2025.
In October, the nonpartisan National Bureau of Economic Research published a working paper focusing on the impact of CEO Elon Musk’s involvement in American politics on the brand, estimating that this activity cost Tesla more than a million in sales in 2025 alone.
In 2019, Musk confidently declared that more than one million self-driving Tesla robotaxis will be roaming America’s roads. by 2020. When robotaxi finally launched in mid-2025, its rollout was extremely limited and beset by missteps, deepening skepticism about self-driving Teslas.
When Musk first introduced the Cybercab concept in 2024, its low price and lack of a steering wheel and pedals promised a new level of EV technology.
In October, Tesla chief executive Robyn Denholm backtracked, acknowledging that the Cybercab might need “a steering wheel and pedals” to meet current regulations.
But Musk turned the tide on November 6, touting an uncontrolled Cyber Booth, shortly after shareholders approved the controversial, massive severance package.
According to Forbes, there is a huge hole in this plan in the form of the National Highway Traffic Safety Administration.
While rivals like Zoox have received the necessary waivers to put autonomous vehicles on the roads, Musk’s grand plan appeared to overlook this make-or-break detail.
“Tesla has not applied for any exemption for Cybercab,” an NHTSA spokesperson said. “Any company seeking to operate a non-compliant vehicle on public roads must apply to and obtain an exemption from NHTSA prior to operations.”
For a long time, Tesla effectively sold itself with little competition and a corner of the EV market.
Times have changed, and as the NBER report proves, so has the public’s perspective on Musk and his ambitious promises.
Although consumers who want make their next car an electric vehicle Tesla, which now has more options, is critical in establishing EV infrastructure such as charging stations.
