Tesla has received approval to operate a taxi service in California, according to a spokesperson from the California Public Utilities Commission (CPUC), a state regulatory body. This approval represents an initial move towards Tesla and CEO Elon Musk’s aim of establishing a driverless taxi service within the state.
Musk has previously stated that Tesla owners might eventually be able to rent out their vehicles as semi-autonomous taxis when not in use. He suggested that Tesla’s Model 3 and Model Y could operate autonomously in California later this year, though this endeavor is confronted with both technological and regulatory challenges.
However, despite obtaining the permit, the prospect of Tesla’s driverless taxi service in California remains distant. California, although ideal in climate for self-driving vehicles, imposes some of the most rigorous regulations for testing and operating such vehicles in the United States. The current permit does not authorize Tesla to transport passengers in autonomous vehicles. According to CPUC spokesperson Terrie Prosper, Tesla has not sought approval for its autonomous vehicle initiatives. Furthermore, to offer driverless rides, Tesla would need authorization from another state regulator, the Department of Motor Vehicles (DMV), which has confirmed that the company has not applied for the necessary permits.
The permit allows Tesla to run a taxi service using vehicles with drivers, who will be Tesla employees, as per the CPUC. Initially, Tesla plans to use the permit to provide prearranged rides exclusively to its employees, with intentions to eventually offer rides to the general public.
Tesla has not yet commented on the permit or future plans for driverless services in California.
Currently, four companies, including Amazon’s Zoox, possess permits to conduct some type of driverless service pilot in the state, although only two of those companies are allowed to have a driver behind the wheel. At the moment, Waymo is the only company operating driverless taxis in California. Taking a deliberate and cautious trajectory, Waymo spent over ten years progressing from testing its early driverless technology on public roads to offering a paid robotaxi service in Phoenix, Arizona. It now extends its services across four cities: Phoenix, San Francisco, Los Angeles, and Austin.
Tesla has also contemplated launching a driverless taxi service in Palo Alto. Last year, according to reporting by Palo Alto Online, Tesla’s Autopilot head, Ashok Elluswamy, was in discussions with the city council and staff about such a service. Initially, Tesla aimed to utilize a permit already issued to another company, Via, which operated shuttle services within California, but eventually resolved to apply for its own permit.
The City of Palo Alto has not provided comments regarding how the new permit may influence robotaxi initiatives in the region.
Earlier this year, Musk announced plans to initiate a driverless taxi service in Austin, Texas, by June. Unlike California, Texas does not enforce strict regulations on autonomous vehicle operations. Last fall, Tesla unveiled its "Cybercab," a two-seat, purpose-built robotaxi prototype, which it aims to begin producing by 2026.
Despite their plans, Musk and Tesla have missed several deadlines. In 2019, Musk predicted the company would have one million robotaxis operational by the following year.
