The recent attempt of Tesla in the field of autonomous transport has taken an interesting twist: a Tesla Cybercab was recently seen driving through Palo Alto street (USA) without any steering wheel in sight. The vehicle was seen in a short video posted to Reddit, the first time the car was spotted on the roads under human control, which makes the company question how it plans to roll out the vehicle and adhere to the regulations.
The actual production of the Cybercab started in earnest when, on December 30, 2025, Tesla announced that it was a recap video overlaid with the phrase “Started Cybercab Production” over the footage of the assembly line in Austin. The company subsequently shared a photograph of the first Tesla Cybercab on the production line a month later, and it was clear that the company had entered the production phase. These statements indicate that Tesla takes the expansion of the vehicle seriously, although consumer sales will depend on the realization of Level 4+ autonomous driving certification that has not yet been achieved.
The Palo Alto video brings in another sense of fascination. Admittedly, without side mirrors and the traditional steering wheel, the car seems to be an actual driverless experience. It has been modified over previous prototypes: it has wider wheel covers, the front and rear bumpers have been redesigned, it has new production grade lights, a frameless window, and a taller tailgate. In the middle of the clip, a man is sitting in the left seat and is observed to be shuffling papers, a minor yet significant detail that highlights the autonomous nature of the Cybercab.
History: Tesla was testing the Cybercab in Giga Texas and on the street, but it was equipped with a steering wheel. Those previous tests were speculative as the company could introduce a consumer-ready model that had a steering wheel, awaiting regulatory clearance. However, the Palo Alto sighting also indicates that the design might have been changed to a completely hands-free version, at least in the initial series of the car.
The regulatory environment in California makes the situation more complicated. California has tough regulations on driverless operations as compared to Texas, where Tesla has had a license to test the autonomous vehicles. The fact that the Cybercab was seen on a Californian road and had no human controls is an indication that Tesla is making a bold move, which may mean that it is intending to stretch its limits as far as what is allowed by the existing laws.
Other than the regulatory obstacles, the design of the Cybercab addresses its purpose. Two seats, a comfort-oriented suspension, and the lack of bolsters to the driver’s seat make the car appear to be designed to be a robotaxi service and not a family vehicle. Tesla has been indicated in the commentary of its executives to suggest that the first marketplace would be internal: the organization might launch its first Cybercabs on an on-demand transport platform of its own before it would think about expanding to a broader consumer base.
It is unknown whether Tesla will ever provide the general population with the Cybercab. The momentum of the vehicle production process, in addition to the risky test of an autonomous run in California, indicates that the company is keen on speeding up its autonomous ambitions. This driverless prototype will either be seen on the streets of America regularly or continue to serve as a high-profile experiment that Tesla can leverage to realize its big picture. It is only time and the success (or failure) of the regulatory review that will tell.
Cyber Cab V_001 driving in Palo Alto this morning
by u/donut_care in teslamotors
