LOGO

Tesla Robotaxis in San Francisco: Challenges & Updates

July 25, 2025
Tesla Robotaxis in San Francisco: Challenges & Updates

Tesla Expands Robotaxi Testing to San Francisco

Following an initial launch last month in Austin, Texas, Tesla is preparing to introduce a highly restricted robotaxi service in San Francisco this weekend, as reported by Business Insider.

According to the report, Tesla intends to extend invitations to Tesla vehicle owners for participation in testing this new service.

Potential Regulatory Concerns

Tesla’s actions, contingent on how the rollout proceeds, could potentially contravene existing state regulations, even with a human safety driver present during autonomous operation.

California employs two state agencies to oversee various facets of autonomous vehicle technology. The Department of Motor Vehicles (DMV) regulates both the testing and deployment phases, requiring permits for driver-accompanied testing, driverless testing, and full deployment.

Current Permit Status

Currently, Tesla possesses a permit enabling the testing of autonomous vehicles with a human safety operator. However, the company lacks permits for driverless testing or deployment.

As of Wednesday, no applications for additional permits had been submitted to the DMV, according to official sources. Currently, only Mercedes-Benz, Nuro, and Waymo hold permits for driverless deployment.

Public Utilities Commission Regulations

Furthermore, Tesla does not currently hold the necessary permits from the California Public Utilities Commission (CPUC), which governs the commercial aspects of ride-hailing and chartered transportation, encompassing both human-driven and autonomous systems.

Tesla does have a Transportation Charter Party permit, allowing human drivers to operate conventional vehicles for charter services. CPUC spokesperson Terrie Prosper clarified this point in an email to TechCrunch.

This differs significantly from an autonomous vehicle permit specifically designed for passenger transportation. Such AV authorizations, which Tesla does not possess, would permit the testing and deployment of autonomous vehicles with or without a driver.

Lack of CPUC Approval

The CPUC has not granted Tesla approval to offer autonomous passenger services, whether paid or complimentary, with or without a driver, and no application has been filed, Prosper stated.

Additionally, Tesla does not hold a “Drivered Pilot AV permit” from the CPUC, preventing the use of an autonomous vehicle, even with a human operator, for passenger service.

Consequently, deploying robotaxis with engaged autonomous systems would constitute a violation of state regulations, even if the rides are provided free of charge and a safety operator is present.

Ongoing Legal Battles

This expansion into California coincides with the DMV’s efforts to prevent Tesla from selling vehicles within the state, stemming from a long-standing lawsuit concerning the company’s claims regarding its vehicles’ self-driving capabilities.

Tesla is also currently involved in a trial related to fatalities linked to the use of its less advanced driver assistance system, Autopilot.

Full Self-Driving Capabilities

Tesla has yet to demonstrate that its Full Self-Driving software is capable of supporting a fully functional robotaxi network.

The invite-only robotaxi service launched in Austin on June 22 has been limited in scope, falling short of the vision Elon Musk has long promoted.

The service is largely confined to Austin’s downtown area and major roadways. A safety operator occupies the front passenger seat, prepared to intervene if the vehicle exhibits potentially unsafe behavior.

While the initial launch involved approximately 10 vehicles, the exact number of Model Y SUVs currently operating in the city and the frequency of safety operator interventions remain unclear.

Musk’s Past Predictions

This represents a significant departure from the “general solution” Musk predicted Tesla would achieve after a decade of development. He previously expressed confidence in the software’s ability to autonomously navigate a cross-country trip from Los Angeles to New York – a demonstration that never materialized.

Musk has indicated this week that Tesla is also exploring expansion into Florida and Arizona. TechCrunch reported earlier this month that Tesla had initiated the certification process required for testing and operation, both with and without a driver, in Arizona.

Note: This article has been updated to reflect new information received from the CPUC.

#Tesla#robotaxi#San Francisco#autonomous vehicles#self-driving cars#Elon Musk