Tesla’s starting its long-awaited robotaxi service in the San Francisco Bay Area, with the company launching operations over the weekend of July 2025. The service operates with safety drivers who can take control using the steering wheel and brakes if needed. Tesla owners are getting invites to use the service, and riders pay for their trips.
Tesla launches Bay Area robotaxi service with safety drivers as the company begins its commercial ride-hailing operations.
The company’s moving fast with its expansion plans. Tesla wants to bring driverless taxis to California and Arizona after its Austin pilot program. The company’s already contacted Arizona’s Department of Transportation to start the certification process. They’ve told officials they want to operate in the Phoenix area.
Elon Musk announced plans to expand to Nevada, Florida, and several other states. Arizona officials expect to make a decision on Tesla’s applications by the end of July 2025.
But Tesla’s facing regulatory roadblocks. California’s DMV confirmed the company hasn’t applied for permits to test or implement driverless vehicles. The California Public Utilities Commission only gave Tesla permission to transport employees, not the general public.
As of July 10, 2025, Tesla hadn’t applied for permits allowing commercial service to regular customers. In Texas, legislators asked Tesla to delay autonomous operations until a new law takes effect on September 1, 2025. The new Texas law requires companies to get prior authorization from the Texas DMV before removing drivers.
Tesla’s scaled up its testing capabilities in California. The company tripled the number of workers testing autonomous vehicles in the state. They’ve registered 224 in-house test drivers and 104 vehicles for California’s autonomous testing permit.
Tesla recently demonstrated its first fully autonomous delivery, with a Model Y driving itself from the Austin factory to a customer’s house. The vehicle reached speeds of 72 miles per hour during the demonstration. The Austin robotaxi fleet uses modified Model Ys equipped with additional camera equipment for enhanced autonomous capabilities.
The Bay Area service covers a large geofenced area from Marin and the East Bay to San Francisco and south to San Jose. Tesla plans to expand coverage from Sausalito and Berkeley to Los Gatos.
The company says its service area will greatly exceed what competitors currently offer. For now, geographic expansion is only allowed in non-autonomous vehicles with human drivers. Musk is reorienting Tesla toward driverless vehicles, AI, and humanoid robots as part of the company’s broader technological strategy.