Tesla shares fell 5.92% on Sept. 4 to close at $354.08, wiping out roughly $88 billion in market value and erasing the previous day’s gain tied to its Cybercab launch event. On the same day as the Sept. 3 commercialization event in Austin, Texas, the U.S. National Highway Traffic Safety Administration opened audit case AQ26002 to examine how Tesla self-certified Cybercab as compliant with applicable Federal Motor Vehicle Safety Standards, even though the vehicle has no permanently mounted traditional manual controls such as a steering wheel, brake pedal, accelerator pedal, or mirrors. The case, triggered by public information, is estimated to involve 1,000 vehicles. For now, the review does not amount to an allegation of wrongdoing, does not require a recall, and does not halt service in Austin. The larger issue is whether Tesla can avoid the exemption route that would cap deployment at 2,500 vehicles a year. As of Sept. 2, only 45 Cybercabs were registered in Texas for unmanned operation.

Tesla shares fell sharply after federal regulators opened a compliance audit into the company’s Cybercab, just one day after the vehicle began commercial deployment on public streets in Austin, Texas. By midday on September 4, Tesla was down 6.5% from the previous close, while the Nasdaq 100 was off about 0.5%, according to the Protos report. The new National Highway Traffic Safety Administration inquiry, listed as Audit Query AQ26002, can cover as many as 1,000 Tesla vehicles. That scope is far larger than Tesla’s Cybercab fleet, which the report described as only a few dozen vehicles. NHTSA said it opened the audit to review the process and technical data Tesla relied on when certifying the Cybercab, along with related issues. The vehicle has no permanently attached steering wheel, brake pedal, accelerator pedal, or rearview mirrors. Under the current U.S. framework, automakers generally self-certify compliance with Federal Motor Vehicle Safety Standards, unless they seek a limited exemption in advance. Protos noted that an Audit Query does not amount to a misconduct allegation, and NHTSA has not announced a recall or made a finding of noncompliance. Reuters said Tesla did not immediately respond to a request for comment.

A legislative review in Taiwan found Tesla FSD is not blocked by an outright legal ban. Officials said the system is still classified as Level 2 driver assistance, and the main holdup is that Tesla has not formally filed its application.