Elon Musk is betting Tesla’s future on a car without a steering wheel or brakes: producing 2 million units per year, and if successful, it will revolutionize the electric vehicle industry.

After years without releasing a completely new model, Tesla has just rolled the first Cybercab off the production line at its Austin plant (Texas, USA).

Elon Musk is betting Tesla’s future on a car without a steering wheel or brakes: producing 2 million units per year, and if successful, it will revolutionize the electric vehicle industry.

After years without launching a completely new model, Tesla has just rolled off the production line for its Austin plant in Texas. With dozens of workers wearing safety helmets and reflective vests surrounding the finished vehicle, Tesla hopes this event marks the beginning of a vehicle line that could completely revolutionize the automotive industry.

Unlike any previous Tesla models, the Cybercab has no steering wheel or gas/brake pedals. If mass production in April proceeds as planned, this will not only be a new product but also a crucial test for Tesla’s future strategy: transforming from an electric car manufacturer into a technology company focused on artificial intelligence, self-driving cars, and robotics.

This vehicle was born for the robotaxe era.

The Cybercab is designed to operate entirely using Tesla’s Full Self-Driving (FSD) software. According to the company’s plans, this model will play a central role in the self-driving robotaxi service that Tesla is developing.

Tesla plans to use Cybercab not only for its own ride-hailing network but also to sell the vehicle to taxi companies and individual users. In the future, owners may even be able to list their personal vehicles on Tesla’s ride-hailing app to generate additional income. CEO Elon Musk has previously stated that the price of Cybercab could be under $30,000, significantly lower than many current electric vehicle models.

Although Tesla has made many breakthroughs in the electric vehicle field, commercializing a car without traditional controls remains unprecedented in the automotive industry.

Elon Musk’s big gamble

In recent years, Musk has prioritized the development of Cybercab over launching new car models. Tesla even canceled two other car projects to focus resources on its self-driving car strategy.

This suggests that Tesla is gradually moving away from direct competition with traditional automakers like Volkswagen or BYD, to focus on its ambition of becoming an AI and robotics technology conglomerate.

“There’s no backup plan here,” Musk told investors earlier this year. “This car is either self-driving or it’s not.”

Some Wall Street experts suggest that Tesla may not sell too many Cybercabs in the initial phase. Instead, the company will likely keep the majority of the vehicles to operate its own robotaxi network.

“Consumers will need time to get used to the idea of ​​buying a car without a steering wheel,” said Morgan Stanley analyst Andrew Percoco.

According to industry sources, Tesla is designing a Cybercab production line capable of assembling hundreds of vehicles per week. At its Giga Texas plant in Austin, the company has ramped up hiring and added new machinery to the assembly line in preparation for production starting in April. However, Musk also acknowledged that the initial phase could be “extremely slow.”

Recent images shared on social media show Tesla has begun transporting more Cybercabs from the factory by truck, a sign that preparations are entering their final stages.

Major hurdles from safety regulations.

Before the Cybercab can be widely sold, Tesla needs approval from the U.S. National Highway Traffic Safety Administration (NHTSA). Because the vehicle lacks a steering wheel, pedals, and rearview mirrors, it doesn’t meet traditional design standards. The NHTSA may grant exceptions for special models, but the number is limited to 2,500 units per year.

Tesla has not yet applied for an exemption for the Cybercab. If regulators conclude the vehicle does not meet safety standards, Tesla could be required to recall and modify the vehicle, and may even face substantial fines for non-compliance.

Tesla isn’t the only tech and automotive company racing to develop fully autonomous vehicles in the US; many others are doing so. However, differences in regulations between states are complicating the deployment of robotaxies. Musk has called this regulatory system “extremely frustrating” and urged the creation of a unified legal framework across the entire country.

Tesla’s CEO aims to produce up to 2 million Cybercabs annually and believes the vehicle line could significantly contribute to the company’s financial results by the end of 2026.

Tesla is in dire need of a new growth driver. While its energy and services segments are expanding, the company’s revenue remains heavily reliant on vehicle sales. Last year, car sales accounted for over 73% of Tesla’s total revenue, but vehicle sales are projected to decline by 10% in 2025.

Some analysts even predict that Tesla’s total sales could continue to decline in 2026, marking the third consecutive year of decline. In this context, Cybercab is not just a new product, but a strategic gamble that could shape Tesla’s future in the era of self-driving cars.