Tesla drops 6% as Cybercab faces federal audit
Tesla Cybercabs stock crashed 6% in an hour this morning following news of a compliance audit. Yesterday, Tesla commercially deployed Cybercabs onto public streets in Austin, Texas. By the end of the day, the National Highway Traffic Safety Administration (NHTSA) quietly opened a new probe, Audit Query AQ26002, of up to 1,000 Tesla vehicles, which would more than cover the company’s Cybercab fleet of only a few dozen vehicles. Tesla stood behind its claim that “Cybercab is engineered to be the safest car on the road.” Chart of Tesla from September 3 close through noon on September 4. Source: TradingView The NHTSA doesn’t typically pre-approve vehicles for compliance with Federal Motor Vehicle Safety Standards (FMVSS). Manufacturers self-certify compliance with FMVSS standards, or request a limited exemption in advance. Whenever the NHTSA suspects non-compliance with FMVSS standards, the agency may probe conduct and pursue remedies. In Tesla’s case, t...