Tesla wants to expand its robotaxi service to the Bay Area — but California regulators say it’s not authorized to carry passengers in AVs. Here’s what Elon Musk’s plan is running into.
Musk Teases Bay Area Robotaxi Launch, But Regulators Slam the Brakes
Elon Musk may be ready to unleash Tesla’s robotaxi service in the San Francisco Bay Area, but California officials are like, “Yeah, no. Not yet.”
During Tesla’s latest earnings call, Musk hinted that the company’s autonomous ride service — currently in limited testing in Austin, Texas — is on deck for expansion. But state regulators in California made it very clear: Tesla’s not cleared to carry passengers in autonomous vehicles, period.
“Tesla is not allowed to test or transport the public in an AV with or without a driver,” said the California Public Utilities Commission (CPUC). Translation: It’s gonna need a human behind the wheel — at all times.
So, What Is Tesla Actually Allowed to Do?
Right now, Tesla has:
- A charter-party carrier permit, which lets it operate a private car service with human drivers
- A drivered AV testing permit from the DMV, meaning it can test autonomous vehicles with a safety driver, but not charge for rides
That means Tesla can legally roll out a service like a fancy chauffeur club — just not a true robotaxi network. At least, not yet.
Despite this, Tesla notified the CPUC it plans to “extend operations” to cover friends, family of employees, and some members of the public. But again: must have a driver, not a fully autonomous ride.
Meanwhile in Texas: Testing Is Happening — With Training Wheels
Over in Austin, Tesla’s robotaxi beta is already live (barely):
- Only operates in daylight and good weather
- Uses Model Y SUVs with Tesla’s latest self-driving tech
- Includes remote supervision and a human safety supervisor riding shotgun
- Limited to invite-only users under an “early access” program
It’s an ultra-cautious rollout — likely because regulators there are watching too. But it shows what Tesla is trying to pull off elsewhere.
California’s Not Impressed — Especially After the FSD Controversy
Tesla’s tension with California doesn’t stop with the robotaxi rollout. The DMV is already taking legal action, accusing Tesla of misleading marketing around its Autopilot and Full Self-Driving (FSD) features.
Tesla now calls its premium system “FSD Supervised”, emphasizing that a driver must stay hands-on and alert. But yeah, customers have posted videos online using it hands-free — playing games, checking phones, etc. The DMV’s not cool with that, and the outcome could affect Tesla’s ability to sell cars in California at all.
Local Officials: “Tesla, Maybe Tell Someone Next Time?”
On top of all that, county officials in the Bay Area say they were left in the dark.
Marin County Supervisor Stephanie Moulton-Peters said she hadn’t heard anything from Tesla about the potential service. Her take?
“I certainly expect they will tell us… it’s a good business practice.”
Supervisor Brian Colbert added that while he’s open to the idea of robotaxis, the rollout was poorly communicated:
“They should have done a better job informing the community.”
Waymo’s Already Miles Ahead — Literally and Legally
While Tesla’s still trying to figure out how to get permission, Alphabet’s Waymo is out here charging for rides in California, fully driverless and fully authorized. Waymo:
- Has both DMV and CPUC permits
- Can charge fares for robotaxi rides
- Is actively expanding service across cities
Tesla? Still playing catch-up — and not making many friends along the way.
Tesla’s Robotaxi Dreams Hit a California-Sized Reality Check
- Tesla wants to expand its robotaxi service to the Bay Area
- California says: not without a human driver
- The company can only operate with human-supervised vehicles
- FSD marketing issues are fueling additional legal drama
- Local officials are salty about lack of transparency
- Meanwhile, Waymo is already cruising ahead
Until Tesla clears the regulatory gauntlet, its Bay Area rides will be more like Tesla Limo Lite™, not true autonomous taxis.
Also check:
Google’s Web Guide Is Like AI Search With Chill Vibes — Here’s What You Need to Know
Kuycon G32P 6K Monitor Wants to Take on Apple — But Can It Be Trusted?
