Tesla Obtains California Permit En route to Establishing a Ride-Sharing Service Network

Tesla has been given a transportation charter-party (TCP) carrier permit by the California Public Utilities Commission (CPUC). Although this permit does not yet allow for fully autonomous rides, it is a crucial step towards...

, and Administrator

2025 September 13 . 5:06 AM

2 min read

Tesla Obtains California Permit as Part of Plan to Establish Ride-Sharing Service

Tesla has taken a significant step forward in its autonomous vehicle ambitions, as the company has been granted a Transportation Network Company (TNC) license in Texas by the Texas Department of Transportation. This approval, effective from September 1, 2025, marks a significant milestone for Tesla as it paves the way for the launch of autonomous ride-hailing services, often referred to as robotaxis.

The Texas Department of Transportation's approval allows Tesla to operate company-owned vehicles with human drivers under specific conditions. Initially, Tesla will use the permit to transport its employees on a prearranged basis using Tesla-owned vehicles. However, it's important to note that Tesla is not yet approved to offer driverless rides.

Tesla's strategy mirrors that of other autonomous vehicle companies like Waymo, starting with human-driven Tesla-owned vehicles before transitioning to fully driverless services. The company has not yet applied for a Transportation Network Company (TNC) permit in California, where regulatory approvals remain a hurdle due to strict self-driving regulations.

In California, Tesla must secure Autonomous Vehicle (AV) permits from the California Department of Motor Vehicles (DMV) to launch a driverless fleet. In contrast, Texas treats autonomous vehicles similarly to traditional vehicles, potentially allowing Tesla to deploy robotaxis without extensive regulatory delays.

Tesla has also applied for a transportation charter-party (TCP) carrier permit from the California Public Utilities Commission (CPUC). However, this permit does not grant Tesla authority to operate autonomous vehicles for commercial service or participate in CPUC's Autonomous Vehicle (AV) Passenger Programs.

Tesla has been in discussions with Austin city officials since mid-2024 to establish safety guidelines and train first responders ahead of a planned mid-2025 rollout in the city. The company's long-term goal is to deploy a fully autonomous robotaxi network, starting this summer in Austin and later this year in California. Tesla has indicated plans to transition to providing rides to the public in the future.

Unlike typical ride-hailing companies such as Uber and Lyft, Tesla will own and maintain its entire fleet. The company is currently allowed to operate company-owned vehicles with human drivers under specific conditions, but the path towards fully autonomous rides is still underway. Tesla's approach to autonomous vehicles continues to evolve, and the company remains committed to its vision of a safer, more sustainable future.