TLDR
- Tesla is redesigning the Cybercab to include an optional steering wheel and pedals after initially planning to sell it without manual controls.
- The change appears to be driven by regulatory pushback from U.S. transportation officials who want human intervention capabilities in autonomous vehicles.
- Tesla board chair Robyn Denholm confirmed the company is willing to add these features to increase buyer interest and meet regulatory requirements.
- Research suggests Elon Musk’s political activities may have cost Tesla between 1 million and 1.26 million vehicle sales through what analysts call the “Musk partisan effect.”
- Tesla shares moved slightly higher on Wednesday following the Cybercab redesign announcement.
Tesla shares ticked up slightly on Wednesday afternoon after the company announced a redesign of its Cybercab autonomous vehicle. The new version will include a steering wheel and pedals.
The original Cybercab design did not include manual controls. Tesla planned to sell it as a fully autonomous vehicle.
That plan has changed. Robyn Denholm, chair of Tesla’s board of directors, confirmed the company will now offer these features as options.
The decision comes after regulatory pushback. U.S. transportation officials reportedly have concerns about selling cars without a way for humans to take control if needed.
The timing is interesting. Tesla CEO Elon Musk has been at odds with Transportation Secretary Sean Duffy recently.
Regulatory Concerns Drive Design Changes
Regulators appear uncomfortable with vehicles lacking manual override capabilities. Even cars designed for self-driving use need intervention options, according to current regulatory thinking.
Tesla’s willingness to add steering wheels and pedals shows flexibility. The company wants to address both regulatory concerns and buyer hesitation.
Duffy has been serving dual roles as Transportation Secretary and NASA’s acting administrator. He recently reopened a contract between NASA and SpaceX, which Musk also runs.
Musk’s moves to satisfy regulators may be strategic. Keeping good relations with government officials could benefit both Tesla and his other ventures.
Political Stance Affects Sales Numbers
New research points to a different problem for Tesla. Musk’s political activities may have hurt the company’s sales substantially.
Researchers identified what they call the “Musk partisan effect.” This refers to sales lost due to the CEO’s public political positions.
The study claims U.S. sales could have been 67% to 83% higher without Musk’s political involvement. That translates to somewhere between 1 million and 1.26 million additional vehicles sold.
Musk has been vocal about his support for the Trump administration. He also frequently shares political views on X, the social media platform he owns.
These findings are debatable. The entire EV market has seen declining demand recently, not just Tesla.
Other manufacturers have also struggled with slowing sales. Market-wide conditions play a role beyond any single company’s leadership.
Still, the research suggests Musk’s public persona has some measurable effect. Consumer purchasing decisions appear influenced by CEO behavior in this case.
Wall Street analysts currently rate Tesla stock as a Hold. The consensus includes 14 Buy ratings, 11 Hold ratings, and 10 Sell ratings from the past three months.
The average price target sits at $382.54 per share. This represents potential downside of about 16.65% from current levels.
Tesla stock has rallied 68.52% over the past year. Wednesday’s gains were modest following the Cybercab announcement.
The Cybercab redesign with manual controls is now confirmed by Tesla’s board chair, with the company ready to add steering wheels and pedals to meet regulatory requirements and buyer preferences.
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