CA regulators block Tesla's robotaxi launch in Bay Area, say company lacks required permit
What to know.
SAN FRANCISCO BAY AREA, Calif. — Tesla's highly anticipated robotaxi rollout in the San Francisco Bay Area is hitting a regulatory wall.
The California Public Utilities Commission (CPUC) confirmed Friday that Tesla does not have the necessary authorization to operate autonomous vehicles for public passenger service - paid or unpaid-in the state.
The clarification comes in direct response to reports that Tesla planned to launch its robotaxi service in the Bay Area as early as this weekend.
While Tesla does hold a charter party carrier (TCP) permit, that authorization only allows the company to operate traditional vehicles with human drivers for charter services. It does not permit the use of autonomous vehicles (AVs), even those with a safety driver behind the wheel.
The CPUC also confirmed that Tesla notified the agency on July 24 of its intent to expand operations under its TCP permit to include friends and family of employees and select members of the public.
The company also said it would broaden its geofence to cover the entire Bay Area-from Sausalito and Berkeley down to Los Gatos. That expansion is allowed, but only in non-autonomous vehicles with human drivers.
This regulatory pushback casts serious doubt on Tesla's ability to move forward with its robotaxi ambitions in California, at least for now.
Business Insider broke that story Friday morning, claiming a company memo was sent out saying Tesla will prep those rides this weekend, moving up a previous timeline for the launch.
CEO Elon Musk alluded to the move during a stakeholder meeting earlier this week, where the company also announced sales and profits dropped in the latest quarter.
"We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two," said Musk. "We are getting the regulatory permission to launch in the Bay Area, Nevada, Arizona, Florida, and a number of other places."
Musk projected that autonomous ride-hailing could reach "half the population of the US by the end of the year," pending regulatory approvals.
"We are being very cautious. We do not want to take any chances," Musk said. "But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate."
Tesla's Robotaxi service recently rolled out in Austin, Texas, and began with a safety driver has access to the brake and steering wheel. Eventually the company moved to fully autonomous rides without a safety driver behind the wheel.
Experts say, when Tesla is allowed to operate in California riders can probably expect the same and it may be a while before public rides are available.