Tesla’s planning to launch what it calls a “robotaxi” service in San Francisco as early as Friday, July 25. The company’s sending invites to select Tesla owners who’ll pay for rides through an app. The service will cover Marin County, the East Bay, San Francisco, and San Jose.
There’s a catch though. These aren’t really self-driving cars. Tesla’s putting safety drivers behind the wheel who’ll control the steering and brakes during every ride. That’s different from companies like Waymo, which operates cars without any human drivers in some areas.
Tesla’s robotaxis aren’t self-driving—they’ll have safety drivers controlling steering and brakes
Tesla doesn’t have the permits it needs for true autonomous rides. The California Public Utilities Commission hasn’t given Tesla approval for driverless passenger services. The Department of Motor Vehicles hasn’t granted Tesla a permit for testing driverless cars either.
Right now, Tesla only has a charter carrier license that allows human-driven services. The company’s met with the DMV recently but hasn’t secured any new permits. Without proper approvals, Tesla can’t legally operate autonomous taxis that carry paying passengers. Some judges are even reviewing whether to suspend Tesla’s California operations entirely. The DMV is pursuing a lawsuit seeking a 30-day stop-sale of Tesla vehicles over allegedly misleading names for its driver assistance software.
Critics say Tesla shouldn’t call this service “robotaxi” when drivers are controlling the vehicles. They argue it’s fundamentally a regular taxi service where the driver happens to be using Tesla’s Autopilot features. Real autonomous vehicles don’t need someone holding the steering wheel.
The first phase of the service will be limited to Tesla employees and their friends. Riders will pay through an app, unlike free test programs other companies offer. The cars will only operate in specific zones defined by software parameters. Tesla’s using modified Model Ys equipped with additional camera equipment for the service.
This launch comes as competitors like Waymo expand their truly driverless services. Those companies obtained full autonomous permits before starting commercial operations. They don’t need safety drivers watching over every trip.
Investors and industry watchers are skeptical about Tesla’s approach. Some worry the company’s misusing the term “robotaxi” for what’s fundamentally a human-driven ride service. The timing’s also notable, as it coincides with other companies rolling out actual self-driving taxis in California.