Tesla Receives Permit for Taxi Service in California, but Without Self-Driving Cars

Tesla has secured a permit to operate a taxi service in California, marking an initial step toward its broader vision of autonomous ride-hailing. However, the permit only allows Tesla to run a taxi service with human drivers, who will be company employees. Initially, these rides will be limited to Tesla employees on prearranged trips, with plans to extend service to the public later.

Despite CEO Elon Musk’s previous claims that Tesla owners would soon be able to operate their cars as self-driving taxis, regulatory and technological hurdles remain. The California Public Utilities Commission confirmed that Tesla did not apply for an autonomous vehicle permit, which would also require approval from the state’s Department of Motor Vehicles—something Tesla has not pursued.

Currently, only Waymo offers fully driverless taxi services in California, while other companies, such as Amazon’s Zoox, have permits for limited autonomous testing. Tesla has also explored launching a self-driving taxi service in Palo Alto and aims to introduce a driverless taxi service in Austin, Texas, in June 2025, where regulations are more lenient. Meanwhile, Tesla’s “Cybercab,” a dedicated robotaxi, is planned for production in 2026, though previous promises of widespread robotaxi deployment have not materialized.