California Permit Lets Tesla Carry Passengers, Putting It on the Road to Robotaxis

Tesla CEO Elon Musk described the initial service as a combination of Airbnb and Uber.
California Permit Lets Tesla Carry Passengers, Putting It on the Road to Robotaxis
Tesla founder and CEO Elon Musk speaks during a media tour of the Tesla Gigafactory in Sparks, Nev., on July 26, 2016. James Glover II/Reuters
Jill McLaughlin
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With hopes of providing a robotaxi service in California this year, Tesla has secured its first permit from the California Public Utilities Commission (CPUC) to carry passengers, officials confirmed March 20.

The electric vehicle company applied for the transportation charter-party carrier permit, a license usually secured for chauffeur-operated services, in November, the California Department of Motor Vehicles (DMV) reported Thursday.

The approval will allow Tesla to own and control a fleet of vehicles and take employees on pre-arranged trips, according to a DMV spokesman.

“Tesla plans to transition to using the permit to transport members of the public on a pre-arranged basis,” DMV spokesman Chris Orrock told The Epoch Times in an email. “Tesla will notify the CPUC when it transitions to transporting members of the public.”

Tesla’s CEO Elon Musk described his vision for the service as “a combination of Airbnb and Uber” at the company’s shareholder meeting in June 2024.

“There will be some cars that Tesla owns itself—kind of like in an Uber fashion,” Musk told shareholders. “But then, for the fleet that is owned by our customers, it will be like an Airbnb thing. You can add or subtract your car to the fleet whenever you want.”

Musk said Tesla owners will be able to click on the company app and add their vehicles to the robotaxi fleet as a way to make money.

“You can add it to the fleet for a few hours, for a few days, or for a few weeks,” he added. “When you want it back, you can say ‘come back,’ and the car will come right back.

“The revenue made by the owner of the car will far exceed the actual monthly payment,” Musk added.

Musk envisioned rolling out the robotaxis in California and Texas this year.

Tesla has not applied for the permits needed to fully roll out its autonomous rideshare services, a DMV spokesperson reported Thursday.

The state has safety, insurance, vehicle registration, and other requirements that manufacturers must meet to operate autonomous vehicles on public roads, according to the DMV.

Tesla CEO Elon Musk rides in Tesla's robotaxi at an unveiling in Los Angeles on Oct. 10, 2024, in this still image taken from video. (Tesla via Reuters)
Tesla CEO Elon Musk rides in Tesla's robotaxi at an unveiling in Los Angeles on Oct. 10, 2024, in this still image taken from video. Tesla via Reuters

The company also needs permits from the state’s DMV and the CPUC to operate and charge customers for the taxi services, according to officials.

The company has only a DMV permit to test autonomous vehicles with a safety driver, which they last reported using in 2019, according to the DMV.

Tesla did not immediately respond to a request for details about its planned autonomous vehicle operations.

In October, Tesla unveiled its Cybercab, a robotaxi that had no steering wheel or control panels. The car is billed as an “individualized point-to-point autonomous transport” that would provide fast, convenient, and affordable service.

The Cybercab is designed to automatically adjust climate, seating positions, and music preferences, among other settings, before it arrives to pick up a passenger, according to Tesla.

“To create a sustainable future, we must democratize transportation,” Tesla said in an announcement Oct. 29. “We do this by making driving more efficient, affordable and safe. Autonomy makes this future possible, today.”

A Tesla dealership in Costa Mesa, Calif., on Nov. 1, 2023. (Mike Blake/Reuters)
A Tesla dealership in Costa Mesa, Calif., on Nov. 1, 2023. Mike Blake/Reuters

Tesla would not be the first company to launch robotaxis in the Golden State.

State regulators approved Waymo’s application for driverless car service in March 2024 for Los Angeles and San Francisco, expanding its service area. The company was already operating in Mountain View, California, and Arizona.

Waymo faces opposition from officials in Los Angeles and San Mateo counties who said the company had only limited discussions with city and county officials about its plans.

Jill McLaughlin
Jill McLaughlin
Author
Jill McLaughlin is an award-winning journalist covering politics, environment, and statewide issues. She has been a reporter and editor for newspapers in Oregon, Nevada, and New Mexico. Jill was born in Yosemite National Park and enjoys the majestic outdoors, traveling, golfing, and hiking.