Tesla Can Now Offer Ride-Sharing in California — But There’s a Catch

Photo courtesy of Tesla
Photo courtesy of Tesla

Tesla has taken a major step forward in California, as the state’s Public Utilities Commission (CPUC) green-lit its ride-sharing permit application. According to The Verge, this approval marks a crucial first step in Tesla’s plans to roll out its Robotaxi service in the Golden State.

Last year, Tesla sought classification as a Transportation Charter-Party carrier (TCP), which allows the company to operate passenger vehicles with its employees behind the wheel. Unlike ride-hailing services like Uber or Lyft, which connect independent drivers with passengers, a TCP permit allows Tesla to transport employees using company-owned vehicles with its staff behind the wheel.

The CPUC has clarified that this new permit enables Tesla to transport employees as passengers using a pre-arranged booking system. However, the commission emphasized that Tesla must notify them before initiating this phase of operations. This approval allows Tesla to use its vehicles for staff transport under a pre-booking mechanism.

However, Tesla still faces several hurdles. It has yet to join the CPUC’s autonomous vehicle passenger program, a necessary step before offering commercial driverless ride services. The company must also secure approval from the California Department of Motor Vehicles to test fully autonomous vehicles—a significant milestone that Tesla has yet to achieve.

Despite these remaining hurdles, industry watchers interpret this development as a clear signal that Tesla is making serious strides with its long-anticipated Robotaxi project.

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