Tesla to Start Robotaxi Service in California and Arizona
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Tesla Inc. is aiming to bring its driverless taxis to California and Arizona as the carmaker plots an expansion on the heels of last month’s limited rollout in Austin.
CEO Elon Musk that Tesla robotaxis could launch in the San Francisco Bay area “probably in a month or two,” pending regulatory approvals. The carmaker also plans to broaden its service area in Austin this weekend, he said.
Tesla has also contacted the Arizona Department of Transportation to begin the certification process for autonomous vehicle ride-sharing, the state agency told Bloomberg in an emailed statement.
The automaker didn’t immediately respond to a request for comment on the Arizona discussions, which have not been previously reported.
(Tesla Daily via YouTube)
Musk is reorienting Tesla around futuristic pursuits like driverless vehicles, artificial intelligence and humanoid robots as its traditional car business struggles. The CEO has a long track record of offering timelines related to autonomous-driving ambitions that the company fails to meet.
In another X post on July 10, Musk said that Grok, the chatbot developed by his startup xAI, will be coming to Tesla vehicles “next week at the latest.”
Tesla shares jumped as much as 4.1% and were up 2.3% as of 1:30 p.m. in New York. The stock had declined 25% this year.
Tesla recently made its long-awaited autonomous ride-hailing service available to a small group of supporters and shareholders in a limited area of Austin. The carmaker has indicated before that California would be up next after Texas.
Bloomberg first reported in February that the company had applied late last year for what’s known as a transportation charter-party carrier permit from the California Public Utilities Commission.
Tesla has told California Department of Motor Vehicles officials that it plans to take a phased approach to operating in the state, starting with giving employees pre-arranged rides using a safety driver.
Investors are closely watching for robotaxi expansion, which could be complicated by regulatory hurdles, technological limitations or traffic incidents. U.S. auto safety regulators already have said they’re looking into Tesla robotaxis appearing to violate traffic laws the first day they were deployed in Austin.
While the Texas launch involved only a handful of Model Y vehicles, Musk has said Tesla will expand to a thousand vehicles within a few months, and later introduce a purpose-built Cybercab with no pedals or steering wheel.
If Tesla can make good on its expansion plans, analysts have said it could pose a threat both to autonomous-taxi companies led by Waymo, and standard ride-hailing providers including Uber Technologies Inc.
Uber Freight ranks No. 14 on the Transport Topics Top 100 list of the largest logistics companies in North America.
“This rapid robotaxi deployment could spell the beginning of Tesla’s assault on existing shared mobility models, including other robotaxi network operators,” Alexander Potter, an analyst with Piper Sandler, said in a note July 10. “The faster this roll-out progresses (without major accidents), the better it will be” for Tesla’s stock.
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