Tesla CEO Elon Musk has confirmed that production of the company's long-awaited Cybercab robotaxi has officially begun, signaling a major push into AI and autonomous driving technology. The announcement came during Tesla's first-quarter 2026 earnings call, where Musk stated, "We have just started production of Cybercab."
To mark the milestone, Musk shared a short promotional video on X showing the driverless vehicle rolling off the assembly line at Tesla's Texas factory and onto public roads. The footage also featured multiple gold Cybercabs driving in formation, highlighting the vehicle's futuristic design.
Slow Start Expected for Cybercab Production
Despite the launch, Musk cautioned that production would ramp up incrementally. "Whenever you have a new product with a completely new supply chain, it's always a stretched out S-curve," he said. "You should expect that initial production of Cybercab and Semi will be very slow, but then ramping up towards the end of the year."
The Cybercab is a two-seat robotaxi with no steering wheel or pedals, built at Tesla's Giga Texas facility. Early units are already rolling off the production line, with continuous production beginning this month after initial builds earlier in the year.
Regulatory Advantage for Tesla
Tesla's VP of vehicle engineering, Lars Moravy, confirmed that the Cybercab will not be subject to US regulatory caps that have constrained rival autonomous vehicle programmes. Unlike competitors such as Waymo or Cruise, which require exemptions from US safety rules, Tesla designed its Cybercab to comply with existing federal standards. This allows the company to scale production without the typical annual limits imposed on other autonomous vehicle makers.
Tesla stated it remains on track to reach "volume production" of both the Cybercab and its electric Semi truck later this year.
Tesla Results Reflect Shift from Cars to AI
The Cybercab rollout comes just days after Tesla reported a mixed first-quarter update, highlighting the tension between current performance and long-term ambitions. The company posted earnings of 41 cents per share, beating expectations, but revenue of $22.39 billion (£16.6 billion) fell slightly below forecasts. Shares initially rose before falling back after Musk revealed increased spending on AI and robotics, with capital expenditure expected to exceed $25 billion this year.
Musk has increasingly positioned Tesla as an AI and robotics firm, with robotaxis central to that strategy. "90 per cent of miles driven are with one or two people," he said. "You'd want a vast majority of your production to be Cybercab."
Autonomy Still a Key Hurdle for Tesla
However, the Cybercab's success will depend on unsupervised autonomous driving, a challenge Tesla has yet to fully solve. Musk said fully driverless full self-driving could reach customers "probably Q4" this year, though timelines for the technology have historically slipped. Recent data shows Tesla's supervised robotaxi systems still lag human drivers on safety metrics, with higher crash rates and occasional issues like vehicles hesitating or getting stuck.
The Cybercab programme has also experienced internal turnover, with several senior leaders departing in recent months.
Tesla's push into robotaxis comes as competition intensifies in its core electric vehicle business, with rivals such as BYD gaining ground globally. While vehicle deliveries rose modestly in the first quarter, they missed expectations, and the company produced more cars than it sold, adding to inventory pressures.
