(Updates with NHTSA's response in the third paragraph.)
Tesla (TSLA) is staffing up and preparing new machines at its Austin, Texas Giga plant to produce hundreds of its new autonomous Cybercab, the Wall Street Journal reported Thursday.
The Cybercab lacks a steering wheel, pedals and side mirrors. But Tesla has not yet applied for a mandatory exemption to produce more than 2,500 vehicles from meeting federal requirements, which include steering wheels, pedals, and side view mirrors, the National Highway and Transportation Safety Authority.
"Tesla has not applied for an exemption at this time, and NHTSA looks forward to working with the company if it seeks one," the regulator said in response to an inquiry by MT Newswires.
Failure to comply with regulations or gain an exemption could trigger a recall order, legal battles, or major fines, the Journal said.
The first Cybercabs were produced last month, the report said. The vehicle, which could cost less than $30,000, is designed to operate with full self-driving software and is meant to be used for ride-hailing services and taxi fleet operators, as well as consumers, the report said.
Tesla did not immediately reply to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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