Elon Musk-led Tesla has received a permit to operate its Robotaxi service in Austin, Texas. This permit will allow the company to run a ride-hailing business with cars integrated with the automated driving system and even compete with companies like Uber and Lyft. The permit was issued this week despite previous reports of the vehicles disobeying traffic rules. According to a listing on the website of the Texas Department of Licensing and Regulation (TDLR) (as seen by CNBC), Tesla Robotaxi LLC is now licensed as a “transportation network company” in Texas until August 6, 2026. The TDLR has also confirmed that this permit will enable Tesla to operate a ride-hailing business anywhere in the state, including with "automated motor vehicles," and does not require a human safety driver or valet to be on board.
This comes after Tesla robotaxis were reportedly captured on camera disobeying traffic laws in and around Austin during the company's pilot program. Although these incidents have not been reported as causing injuries or significant property damage, they have attracted federal scrutiny.
Tesla gets Robotaxi permit in Texas: What we know so far
Earlier this year, the EV company began offering a limited ride-hailing service in Austin, which was available only to invited participants. Most of these riders have been social media influencers and analysts, many of whom earn income by creating Tesla-related content on platforms such as X and YouTube.
The Austin fleet comprises Model Y vehicles fitted with Tesla’s latest partially automated driving technology. Each ride includes a valet, or human safety supervisor, in the front passenger seat to step in if needed. The cars are also monitored remotely by staff at an operations centre.
On Tesla’s earnings call last month, Musk—who has described himself as “pathologically optimistic”—said he believes the company could reach half of the US population with autonomous ride-hailing services by the end of 2025.
However, there have been multiple reports about Tesla Robotaxi “misbehaving” on the road. In one incident, Tesla content creator Joe Tegtmeyer said his robotaxi did not stop for a train crossing signal and lowering gate arm, prompting a Tesla employee on board to step in.
The National Highway Traffic Safety Administration has also spoken with Tesla about the matter, a spokesperson for the agency told CNBC via email.
This comes after Tesla robotaxis were reportedly captured on camera disobeying traffic laws in and around Austin during the company's pilot program. Although these incidents have not been reported as causing injuries or significant property damage, they have attracted federal scrutiny.
Tesla gets Robotaxi permit in Texas: What we know so far
Earlier this year, the EV company began offering a limited ride-hailing service in Austin, which was available only to invited participants. Most of these riders have been social media influencers and analysts, many of whom earn income by creating Tesla-related content on platforms such as X and YouTube.
The Austin fleet comprises Model Y vehicles fitted with Tesla’s latest partially automated driving technology. Each ride includes a valet, or human safety supervisor, in the front passenger seat to step in if needed. The cars are also monitored remotely by staff at an operations centre.
On Tesla’s earnings call last month, Musk—who has described himself as “pathologically optimistic”—said he believes the company could reach half of the US population with autonomous ride-hailing services by the end of 2025.
However, there have been multiple reports about Tesla Robotaxi “misbehaving” on the road. In one incident, Tesla content creator Joe Tegtmeyer said his robotaxi did not stop for a train crossing signal and lowering gate arm, prompting a Tesla employee on board to step in.
The National Highway Traffic Safety Administration has also spoken with Tesla about the matter, a spokesperson for the agency told CNBC via email.
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