Tesla has secured the first of several regulatory approvals required to launch a robotaxi service in California, US.

The California Public Utilities Commission (CPUC) had granted Tesla a transportation charter-party carrier (TCP) permit, which allows the company to own and manage a fleet of vehicles for pre-arranged trips involving employees.

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The TCP license, typically associated with chauffeur-driven services, allows Tesla to own and operate a fleet for transporting employees on pre-arranged trips, reported Reuters.

However, a CPUC spokesperson was cited by the news agency as saying that the current permit “does not authorise them to provide rides” in autonomous vehicles to the general public, nor does it permit Tesla to operate a ride-hailing service.

Tesla CEO Elon Musk has shifted focus to robotaxis to introduce driverless ride-hailing services in California and Texas within the year.

In October 2024, Tesla unveiled the Cybercab, a robotaxi concept without a steering wheel or pedals.

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Tesla’s application for the TCP permit was submitted in November 2024, but the company has yet to apply for additional permits from the CPUC and the California Department of Motor Vehicles (DMV) required for a fully autonomous service that charges customers.

Currently, Tesla only possesses a DMV permit for testing autonomous vehicles with a safety driver on board.

A DMV spokesperson stated that Tesla has not applied for any further permits necessary to proceed with a CPUC application for driverless taxis.

Tesla has not provided comments on the permit or the status of other applications.

Recently, Reuters reported that Tesla plans to introduce a more cost-effective version of its Model Y in China.

The new variant is expected to be at least 20% cheaper to produce than the current Model Y, two sources said.

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