Tesla’s driverless robotaxi service has won approval to operate across Texas after state regulators granted the company a Transportation Network Company license on August 7, 2025. The Texas Department of Licensing and Regulation made the authorization effective August 8, with the license valid through August 6, 2026.
Texas regulators approved Tesla’s statewide robotaxi service with a Transportation Network Company license effective August 8, 2025.
The approval comes under Senate Bill 2807, which Governor Greg Abbott signed in June 2025. This new law creates a structure for autonomous vehicles and takes effect September 1, 2025. It puts Tesla in the same regulatory category as Uber and Lyft, treating self-driving ride services the same as those with human drivers.
Tesla’s statewide permit allows it to legally implement autonomous ride-hailing services throughout Texas. The company must follow specific rules for driverless operations. Vehicles need emergency response plans and backup sensors when operating without anyone onboard. They must also have working cameras, carry insurance, and follow all traffic laws. Tesla retains control over which vehicles can join its robotaxi fleet, requiring each car to be registered and authorized through its systems before autonomous dispatches.
The company started testing its service in Austin in late June 2025 using Model Y vehicles. The initial pilot program was invitation-only and included select riders like social media influencers and Tesla content creators. During these early trips, a safety supervisor sat in the passenger seat while the car drove itself. Tesla’s operations center monitored all vehicles remotely.
Since launching in Austin, Tesla has expanded its service area there and started operations in the San Francisco Bay Area. The company’s been hiring Vehicle Operators and Autopilot staff in multiple states throughout August 2025. Job postings show Tesla’s targeting New York, Nevada, Arizona, and Florida for its next markets. However, local residents in Austin have captured footage of Tesla vehicles committing traffic violations, raising questions about the safety of the autonomous system.
Tesla’s goal is to serve half the U.S. population with self-driving ride-hailing by the end of 2025. The Texas license gives Tesla a direct path to compete with traditional ride-sharing companies. Its autonomous service model could challenge the current human-driven ride-hailing business.
Texas serves as Tesla’s launchpad for rolling out its Robotaxi service nationwide. The regulatory approval provides the basis Tesla needs to implement its autonomous vehicle fleet in cities across the state. This positions the company to execute its long-term vision for autonomous transportation.