Tesla’s launching its Robotaxi service in California’s Bay Area this July, but there’s a catch — the supposedly self-driving cars will still need human safety drivers behind the wheel.
The service kicks off as an invite-only program through Tesla’s Robotaxi app. Selected Early Access users can book rides across the Bay Area, from San Francisco to San Jose, including cities like Berkeley, Fremont, and Hayward. Only Tesla vehicles equipped with Full Self-Driving hardware can participate in the program.
Tesla faces significant regulatory obstacles in California. The California Public Utilities Commission says the company doesn’t have the right permits to operate autonomous vehicles. Current rules prohibit both paid and unpaid autonomous rides without proper authorization. Tesla’s only approved to transport passengers in regular, non-autonomous vehicles with the DMV. The CPUC confirms Tesla has not applied for the necessary authorization to operate as an autonomous vehicle service.
The company’s working around these restrictions by using what it calls “FSD Supervised mode.” This means a human driver sits behind the wheel during every ride, ready to take control if needed. The app’s terms clearly state that riders are agreeing to supervised operation when they use the California service. Safety drivers keep their hands near the steering wheel and can override the car’s decisions at any time. The service runs on unreleased FSD versions, which could raise questions about the technology’s readiness for public use. Tesla’s FSD technology can handle lane changes, highway exits, and traffic signals, but requires human supervision and manual intervention when necessary.
Tesla’s Robotaxi operates in specific geofenced zones mapped out for high-traffic areas. The company’s using a phased approach, starting with frequent Tesla users before expanding to more customers. Users can switch between Bay Area and Austin services if they’re part of the Early Access program in both regions.
The service positions Tesla as a competitor to traditional ride-hailing companies like Uber and Lyft. It’s part of Tesla’s shift toward recurring revenue streams beyond just selling cars. The company’s betting on the combination of electric vehicles and future autonomous technology to set it apart in the crowded ride-hailing market.
Tesla hasn’t provided updates on when it might get full autonomous permits. Until then, every Robotaxi ride in California will have a human driver watching over the car’s automated systems, making it more of a supervised demonstration than a true self-driving service.