Tesla’s ride-hailing service in California has grown considerably since its launch. The company registered 1,655 vehicles with California’s Public Utilities Commission for its Bay Area service.
However, Tesla hasn’t applied for an autonomous vehicle license or driverless testing permit with the state’s Department of Motor Vehicles. This means the service doesn’t operate as a true robotaxi, despite how Tesla’s described it.
The service began in August with just 28 cars and 128 drivers. Now, 798 drivers are registered with the CPUC. The registration numbers show vehicles approved for use, not necessarily cars actually operating on the road. Tesla only needs to file incremental updates when adding new vehicles, not new drivers. In contrast, competitors like Waymo operate with over 1,000 fully autonomous vehicles in their fleet.
California regulations require that someone sit in the driver’s seat, unlike some other states. Tesla obtained a ride-hailing permit that allows transportation for employees and some members of the public with a driver present. The CPUC confirms it hasn’t authorized Tesla for public autonomous vehicle transport.
This creates a puzzle. Tesla’s Q3 shareholder letter claimed the launch used Robotaxi technology. The company’s CFO said over 1 million miles were driven in the Bay Area with a safety monitor.
Yet the Bay Area service lacks true robotaxi features because it has no driverless permit. To address growing demand and extended wait times, Tesla is recruiting factory workers and sales staff to serve as AI operators who monitor vehicles and take control when necessary.
Meanwhile, Tesla moved forward differently in other states. In Austin, Texas, the Robotaxi service started in June with a safety monitor and kill switch.
Plans call for removing the safety monitor by year’s end. Tesla completed self-certification in Nevada and Arizona last month. Arizona allows commercial operation, but Tesla hasn’t offered paid rides yet.
Tesla hasn’t filed a license application in Nevada. CEO Elon Musk mentioned Arizona, Nevada, and Florida as future permit locations, significantly excluding California.
The reason appears clear. California requires companies to file detailed reports to operate driverless vehicles. Other states use an honor system.
Tesla seems hesitant about California’s stricter requirements. The company’s reluctance to apply for driverless permits there contrasts sharply with its expansion plans elsewhere.