Tesla has introduced its Robotaxi app in San Francisco, allowing users to sign up for rides in the Bay Area. The app became available in the Apple App Store on Wednesday, featuring a waitlist for prospective riders. The service area includes major cities such as San Francisco, Oakland, Berkeley, and extends down the Peninsula to San Jose. Despite this rollout, significant questions remain regarding the regulatory approvals necessary for the operation of Tesla’s autonomous taxis.
The app’s launch comes amid reports that Tesla has not completed all required safety testing for its fully autonomous vehicles. In a previous announcement in July, CEO Elon Musk hinted at the impending deployment of the Robotaxi service, but he refrained from using terms like “autonomous” or “robotaxi.” Instead, he mentioned that users could hail a Tesla in the Bay Area, as well as in Austin. This cautious language led to speculation that Tesla only possesses a limousine service permit in California and is yet to secure the necessary authorizations for fully autonomous operations.
The app’s Terms of Service suggest that some rides may occur without a safety operator present. This reflects a practice seen in Austin, where safety operators occasionally occupied the passenger seat. The Terms indicate that rides in California are being conducted with the authority of the California Public Utilities Commission. The agreement states, “If your ride is taking place without a safety driver present in the driver’s seat, it is being conducted autonomously.” This raises concerns about whether Tesla can legally conduct these rides without the appropriate permits.
In early July, Musk claimed to be “waiting on regulatory approval,” yet media investigations revealed that Tesla had not applied for crucial permits needed for operating fully autonomous vehicles or for semi-autonomous rides with safety drivers where passengers are charged. According to a report by Business Insider, both the CPUC and the California DMV had not granted Tesla these permits as of late July. Tesla’s legal representatives suggested to the DMV that their aim was to run a conventional transportation service akin to Uber, utilizing semi-autonomous software similar to that in standard Tesla vehicles. However, state officials remained skeptical of this approach.
The app includes payment options, but it remains unclear how these will function in the Bay Area context, particularly regarding the involvement of safety drivers. Emily Warren, a deputy secretary at the California State Transportation Agency, reportedly reached out to Tesla following media inquiries about the Robotaxi launch. She warned Tesla that they only had permits for a conventional transportation service and not for operations involving autonomous vehicles or the full self-driving software.
The situation evokes memories of Uber and its previous self-driving initiatives, which launched without proper permits, leading to swift regulatory action. As reported by Politico, Tesla had engaged with California regulators and DMV officials regarding this project since early 2024, but discussions appeared to stall during Musk’s brief involvement in Washington politics. Meetings with state agencies were reportedly alarmed by Musk’s launch announcements.
On July 6, Catherine Stefani, a former San Francisco supervisor turned California Assemblymember, expressed significant concern in an open letter to the DMV. She emphasized that Tesla had not fulfilled the essential steps required to obtain a DMV Driverless Deployment permit. She stated, “Combined with the ongoing NHTSA investigation and the growing safety concerns stemming from its operations in Austin, there is no credible basis on which the DMV could deem Tesla’s technology ready for public deployment on our streets.” Stefani remarked to Politico, “If any other company tried to skirt the rules like this, they’d be shut down immediately.”
As of September 1, 2024, new regulations in Texas require permits for autonomous vehicle operations. Users in Austin noted that their rides through the Tesla Robotaxi app included safety drivers actively engaged in driving.
Following the public launch of the Robotaxi app, reports indicate that it took only three hours for users to move off the waitlist. As Tesla continues to navigate this complex regulatory landscape, the future of its Robotaxi service remains uncertain.
