Tesla Has Applied For A Permit To Run Robotaxis In California 

Tesla has applied for a permit with California regulators in hopes of launching an autonomous ride-hailing service.

According to documents viewed by Bloomberg, Tesla submitted an application with the California Public Utilities Commission (CPUC) late last year, seeking a transportation charter-party carrier permit. This distinction means Tesla would wholly own and operate its fleet, unlike other ride-hailing services. 

What this doesn’t mean is that the Cybercab we saw in October will be picking you up anytime soon. Although this is the same permit used by Waymo, Tesla’s discussions with California officials include talks about driver records and drug testing, which suggest its ride-hailing business will have drivers—at least in the beginning. 

To operate or even test a self-driving fleet, additional approval from the California Department of Motor Vehicles (DMV) is required. And Tesla hasn’t done that yet. The DMV said Tesla is approved for autonomous vehicle testing in the state, but only with a self-driving tester or safety driver onboard. Reuters reports that there are also other permits required before Tesla can actually charge for any kind of ride-hailing service, autonomous or not.

So, of course, there isn’t a blanket operator’s license for ride-hailing businesses. It’s all dependent on needs and the business model. For example, Lyft and Uber utilize their drivers’ personal vehicles and carry a permit different from that of Waymo, which operates a robotaxi service in San Francisco. However, the DMV can suspend them any time, such as with General Motors’ Cruise after a string of incidents, including a pedestrian hit-and-run. Cruise’s CEO subsequently quit, and GM shut the whole company down in December.

This isn’t so much a shift in Tesla strategy as it is another stream of revenue. Tesla CEO Elon Musk’s recent political side hustle has left his EV business floundering. In the U.S., investors are worried as Tesla’s stock is down about 40%, and car sales are also struggling. Tesla sales in Europe have faltered more dramatically, including a 63% January plunge in France, one of its largest EU markets. Bloomberg reports that February sales were no better as Tesla saw a 45% decline across Europe, even though EV registrations were up 37% overall.

Extra income via Tesla robotaxis could come as early as June, said Bloomberg. In Texas, where licensing of autonomous vehicles is similar to a standard human-operated one, Musk said the driverless car service would be available in Austin. There is still “a bunch of work that needs to be done to make sure the whole thing works efficiently,” he reiterated. However, as of February, the Texas Department of Licensing and Regulation has not been contacted.

In the meantime, though, an app-based ride-hailing service (with a driver) has been offered up to Tesla’s Bay Area employees. Musk said public service in California would start by the end of the year. If any Tesla workers want to let us know how that’s going, feel free to reach out.

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