The US National Highway Traffic Safety Administration ordered Tesla Inc (NASDAQ: TSLA) to respond to 21 detailed questions regarding its Cybercab robotaxi self-certification by September 30.

NHTSA Chief Counsel Peter Simshauser issued the request under Audit Query AQ26002 on September 10, following the agency's opening of the audit on September 3 after Tesla began commercial deployment in Austin, Texas. Responses must be provided under oath by a Tesla officer.

Regulatory Scrutiny on Driver Controls

Noncompliance carries civil penalties up to $139.35 million and criminal penalties of up to 15 years in prison, or both, according to NHTSA. Regulators are examining whether temporarily installed human driver controls influenced Tesla’s compliance certification and how removing them aligns with federal “make inoperative” rules.

The agency also questioned whether touchscreen controls allow occupants to move the vehicle and how Tesla justifies compliance with Federal Motor Vehicle Safety Standard No. 135, which mandates service brakes activated by a foot pedal.

Missing Features Under Review

The order requires Tesla to detail the presence of mirrors, a self-canceling turn signal, and a shift-position display required under current standards. The two-seater vehicle lacks a steering wheel, brake pedal, and accelerator pedal.

This scrutiny coincides with efforts by Tesla and Alphabet Inc’s Waymo to push federal regulators to eliminate traditional driver-control requirements for autonomous vehicles entirely. The Trump administration has signaled support for this regulatory shift, while safety advocates argue exemptions should wait until robotaxi makers prove safety without human backups. Amazon.com Inc’s Zoox unit won a similar exemption in July.

Operational Challenges Amid Rollout

Tesla’s rollout faces operational hurdles alongside regulatory pressure. A rider reported a trip from 99 Ranch Market to The Domain in north Austin stretched to roughly 70 minutes after the Cybercab avoided highways. Deepwater Asset Management co-founder Gene Munster predicted Tesla could add roughly 300 Cybercabs to its Austin fleet within a month of launch.

Market Performance

Tesla has a market capitalization of $1.40 trillion. TSLA stock closed at $356.58 on Tuesday, down 0.67%. Shares have dropped 20.71% year-to-date. The stock has traded between a 52-week low of $297.38 and a high of $498.83.

What the Numbers Show

The juxtaposition of Tesla’s $1.40 trillion market valuation against a 20.71% year-to-date decline highlights significant investor caution despite aggressive expansion plans. While Gene Munster projects rapid fleet growth of roughly 300 units in Austin within a month, the immediate operational reality involves service disruptions, such as the reported 70-minute detour for a short trip, suggesting that scaling autonomous operations faces tangible execution risks beyond regulatory hurdles.

Elon Musk has reignited speculation about a potential merger between Tesla Inc. (NASDAQ: TSLA) and Space Exploration Technologies Corp. (NASDAQ: SPCX), citing deep collaboration between the two entities he leads.

During a Monday appearance on the All In Podcast with SpaceX President Gwynne Shotwell, Musk addressed questions regarding a possible combination. "With all this collaboration on so many levels, imagine what action one might take when there's so much close collaboration in so many areas," Musk said.

Market Pricing and Compensation Implications

Bettors on the prediction market platform Kalshi have priced in significant probability for the deal. The platform shows a 66% chance that the two companies will merge before 2028. Additionally, there is a 47% chance the merger occurs before May next year.

The comments arrive as Musk faces potential massive financial upside from such a transaction. Under the new Tesla CEO compensation award approved by investors in November 2025, Musk's compensation would be determined solely by factors like market capitalization if Tesla were to merge or be acquired. Analysts estimate this could result in an $824 billion payday for Musk.

Investor Perspectives

Ross Gerber of Gerber Kawasaki stated that a merged entity would become a "must-have" investment for global investors. However, Gerber warned that the deal structure might not benefit existing shareholders equally.

In an exclusive conversation with Benzinga, Gerber noted that while the combined company would be attractive, the merger would not be a great investment for current Tesla investors and would be dilutive for SpaceX investors.

What the Numbers Show

The divergence in market pricing highlights uncertainty around the timeline. While long-term confidence is high with a 66% probability for a pre-2028 merger, the shorter-term outlook is less certain, with only a 47% chance of completion by May next year. This gap suggests market participants view the regulatory or structural hurdles as significant enough to delay a near-term closure.