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Tesla to launch human-driven ride service

Tesla to launch human-driven ride service

Tesla is set to roll out a human-driven chauffeur-style ride service in the San Francisco Bay Area, not a robotaxi service, a California state regulator clarified Friday, pushing back on earlier media reports.

According to a spokesperson from the California Public Utilities Commission, the electric vehicle company lacks the necessary permits to operate autonomous vehicles and has not applied for them. Therefore, the upcoming service will involve traditional vehicles operated by human drivers, not fully autonomous robotaxis.

Earlier this week, Tesla CEO Elon Musk told investors the company was “getting regulatory permission” to launch robotaxis in various markets, including the Bay Area. A report by Business Insider also described the upcoming service as a “robotaxi” offering, albeit with human drivers capable of taking control.

However, CPUC officials drew a clear distinction. Tesla is only authorized to offer rides under a permit that allows a human driver to transport passengers for charter purposes. The company informed the commission that it will begin by offering rides to “friends and family of employees” and “select members of the public.”

The announcement comes on the heels of Tesla’s limited robotaxi trial in Austin, Texas, which involved Model Y SUVs operating under its Full Self-Driving (Supervised) software with human safety monitors in the passenger seat. But in California, regulators insist that Tesla’s system does not qualify as autonomous since it requires driver oversight at all times.

Tesla currently holds a DMV permit to test self-driving vehicles with a safety driver, but it has not applied for permits to operate autonomous vehicles without a driver or to collect fares.

By contrast, rivals like Waymo spent nearly a decade and secured seven separate approvals before launching their driverless robotaxi service in California last year.