Tesla to Launch Chauffeur-Style Service in Bay Area Amid Robotaxi Delays

Tesla plans to introduce a limited chauffeur-style ride service in the San Francisco Bay Area, the California Public Utilities Commission (CPUC) confirmed Friday. The program will rely on human drivers, countering earlier media reports suggesting the service would be fully autonomous robotaxis.

Unlike Alphabet’s Waymo, Tesla lacks the required permits to operate autonomous vehicles in California and has not applied for them, according to CPUC. CEO Elon Musk recently stated Tesla was working to secure regulatory approvals for robotaxis in multiple markets, including the Bay Area. However, Ashok Elluswamy, head of Tesla’s self-driving program, clarified during an earnings call that the initial rollout would involve human drivers “to expedite” the launch while awaiting approvals.

Last month, Tesla began testing a small robotaxi pilot in Austin, Texas, using Model Y SUVs equipped with its Full Self-Driving (Supervised) system. These vehicles operated autonomously but included human safety monitors in the front passenger seat.

For California, Tesla told regulators it plans to offer rides to employees’ friends, family, and select members of the public under an existing charter permit, which only allows traditional human-driven vehicles. CPUC regulations prohibit Tesla from transporting the public in autonomous mode, even with a safety driver.

To operate true robotaxis in California, Tesla must secure multiple permits from both CPUC and the Department of Motor Vehicles (DMV). The company currently only holds a DMV permit for autonomous vehicle testing with a safety driver and has not applied for expanded permissions.

Competitor Waymo spent nine years testing and obtained seven regulatory approvals before launching fully driverless ride-hailing services in California in 2023, highlighting the lengthy path Tesla faces to deploy its robotaxi ambitions.