Tesla California Permit: What It Can & Can't Do

Tesla Secures Transportation Permit in California

On Tuesday, Tesla was authorized by the California Public Utilities Commission (CPUC) to operate a transportation service within the state. This represents an initial step in a comprehensive regulatory process that may ultimately result in approval for the operation of a robotaxi service.

Permit Details and Scope

The permit, for which Tesla applied in November 2024, does not currently authorize autonomous vehicle testing or deployment. It differs technically from the permits held by established ride-hailing companies like Lyft and Uber.

Tesla has been granted a transportation charter permit (TCP). According to the CPUC, which oversees both human-driven and driverless ride-hailing services, a TCP signifies that the company – in this instance, Tesla – maintains ownership of the vehicles and employs drivers.

TCP vs. TNC Permits

A TCP is designed for companies intending to provide prearranged transportation services, such as scheduled sightseeing tours, as outlined by the commission.

In contrast, Uber and Lyft operate under transportation network company (TNC) permits. TNCs utilize application-based platforms, like smartphone apps, to connect passengers with drivers utilizing their privately owned vehicles.

Initial Implementation and Future Plans

Tesla intends to initially leverage its TCP permit to transport employees on a prearranged schedule, utilizing vehicles owned by the company. Tesla has committed to informing the CPUC when it intends to extend transportation services to the general public.

Notably, Tesla’s current application does not include a request for participation in the CPUC’s Autonomous Vehicle Passenger Service Programs, either with or without a driver present. This does not preclude a future application for these permits.

Regulatory Landscape and DMV Oversight

Should Tesla pursue those permits, it will also be required to obtain approvals from the California Department of Motor Vehicles (DMV), the state agency responsible for regulating autonomous vehicle testing and deployment.

Currently, Tesla lacks authorization from the DMV to offer any driverless rides for either testing or deployment purposes, as confirmed by state regulators.

Robotaxi Launch in Austin, Texas

Concurrently, Tesla is preparing to launch a robotaxi service in Austin, Texas. Tesla CEO Elon Musk has announced the service is expected to commence in June, utilizing the company’s own fleet of vehicles equipped with the forthcoming “unsupervised” iteration of its Full Self-Driving software.

• The California permit is a transportation charter permit (TCP).
• Uber and Lyft operate with transportation network company (TNC) permits.
• Tesla’s initial use will be for employee transportation.