Check what shell 'newuser' is using. Make sure it's one that actually supports tab completion (like bash or zsh).
You can determine what shell the user is using using the following command
# getent passwd rodjek rodjek:x:1001:1001:x:/home/rodjek:/bin/zsh
You can change the users shell using the chsh command
# chsh -s /bin/bash rodjek
I added a new linux user by doing a
useradd -d /var/www/mywebsite.com -m newuser passwd newuser
change home directory
usermod -m -d /newhome/username username