Tesla Approved to Give Robotaxi Rides in California

The California Public Utilities Commission has granted Tesla the first in a series of approvals from California to operate Robtoaxis. The cars will be driving themselves, but a Tesla employee will be in the drivers seat. As Tesla receives its remaining approvals needed, there will eventually be no one in the drivers seat.

Tesla’s application was for a transportation charter-party carrier permit, a license that is typically associated with chauffeur-operated services.

What Does Tesla’s TCP Permit Allow?
• In November 2024, Tesla applied for a TCP permit to operate vehicles that they own using drivers that are Tesla employees.
• According to Tesla’s application, Tesla will initially utilize the TCP permit to transport Tesla employees, on a prearranged basis and in Tesla-owned vehicles.
• Tesla plans to transition to using the permit to transport members of the public on a pre-arranged basis. Tesla will notify the CPUC when it transitions to transporting members of the public.

What Does Tesla’s TCP Permit Not Allow?
• Tesla has not applied for a Transportation Network Company (TNC) permit. A TNC authority is often informally referred to as “ridesharing” or “ridehailing.” TNCs provide prearranged transportation services for compensation using an online-enabled application or platform (such as smart phone apps) to connect drivers using their personal vehicles with passengers (e.g., Uber, Lyft).
• Tesla’s application does not seek participation in CPUC’s Autonomous Vehicle (AV) Passenger Programs in either a drivered or driverless capacity, and a TCP permit alone does not authorize them to provide rides in AVs. Prior to applying to the CPUC’s AV Passenger Service programs, a carrier must also possess the relevant AV authority from the California Department of Motor Vehicles; Tesla does not possess authority from the DMV to offer any driverless rides for testing or deployment purposes.

BREAKING: I have just contacted and confirmed directly with the California Public Utilities Commission that @Tesla has been granted the first in a series of approvals from California to operate Robtoaxis.

Tesla’s application was for a transportation charter-party carrier permit,… pic.twitter.com/u9ynTaOfaX

— Sawyer Merritt (@SawyerMerritt) March 18, 2025

The permit mentioned in the article is a transportation charter-party carrier permit granted by the California Public Utilities Commission (CPUC) to Tesla Inc. This permit allows Tesla to begin carrying passengers in California as part of its ride-hailing operations, initially using company-owned vehicles with prearranged trips before expanding to public transport. Essentially, this permit authorizes Tesla to operate as a charter-party carrier, which includes services like limousines, shuttles, or in this case, a ride-hailing service using its electric vehicles.

However, operating a paid robotaxi service—especially one involving autonomous vehicles—requires additional permits and approvals in California.

1. Autonomous Vehicle Testing and Deployment Permits (from the California DMV)

Testing Permit with a Driver: If Tesla is still testing its autonomous driving technology with a safety driver present, it needs a permit from the California Department of Motor Vehicles (DMV) to test autonomous vehicles on public roads.
Driverless Testing Permit: If Tesla wants to test its vehicles without a human driver, it must obtain a separate driverless testing permit from the DMV. This involves demonstrating the vehicle’s ability to operate safely without human intervention and submitting detailed safety reports.
Deployment Permit: To deploy fully autonomous vehicles for commercial use (like a paid robotaxi service), Tesla needs a deployment permit from the DMV. This permit requires the company to prove its vehicles meet safety standards, comply with state laws, and can handle real-world driving scenarios. Tesla would also need to show it has cybersecurity measures, data recording capabilities, and a plan for interacting with law enforcement.

2. CPUC Autonomous Vehicle Passenger Service Permit

Beyond the charter-party carrier permit mentioned in the article, the CPUC also regulates autonomous vehicle passenger services. Tesla would need a specific permit to offer paid rides in autonomous vehicles. The CPUC has a two-phase pilot program for autonomous vehicle passenger services:
Phase 1: Testing with No Fares: Companies can test AV passenger services without charging passengers, but they must report data to the CPUC.
Phase 2: Commercial Deployment: To charge passengers for rides in autonomous vehicles, Tesla would need CPUC approval for a commercial AV passenger service. This involves demonstrating compliance with safety, accessibility, and consumer protection standards.

3. Local Permits and Approvals

City and County Permits: Depending on the cities or counties where Tesla plans to operate its robotaxi service, it may need additional permits or business licenses. For example, cities like San Francisco or Los Angeles may have their own regulations for ride-hailing services.
Airport Permits: If Tesla wants to pick up or drop off passengers at airports, it may need specific permits from airport authorities, such as the San Francisco International Airport (SFO) or Los Angeles International Airport (LAX).

4. Insurance and Financial Responsibility Requirements

California requires companies operating autonomous vehicles to carry specific levels of insurance or financial responsibility. For autonomous vehicle services, Tesla would need to show proof of insurance (typically $5 million in coverage for testing and deployment) to the DMV and CPUC to cover potential accidents or liabilities.

5. Compliance with Accessibility and Environmental Regulations

The CPUC often requires ride-hailing services to meet accessibility standards, such as providing services for people with disabilities. Tesla would need to ensure its robotaxi service complies with these rules.
Additionally, California has strict environmental regulations. While Tesla’s electric vehicles already align with the state’s zero-emission goals, the company may need to report on its environmental impact as part of its CPUC permits.

6. Federal Approvals (NHTSA)

While not specific to California, Tesla would also need to comply with federal regulations from the National Highway Traffic Safety Administration (NHTSA). If Tesla’s autonomous vehicles deviate from federal motor vehicle safety standards (e.g., no steering wheel or pedals), it may need an exemption from the NHTSA to operate commercially.

Summary of Permits Needed:

Already Obtained (per the article): Transportation charter-party carrier permit (CPUC) for prearranged passenger transport.
Additional Permits Likely Needed:
Autonomous vehicle testing/deployment permits (California DMV).
CPUC autonomous vehicle passenger service permit for paid rides.
Local city/county permits and airport permits.
Proof of insurance/financial responsibility.
Compliance with accessibility and environmental regulations.