March 19, 2025 – Tesla has cleared its first regulatory hurdle in launching autonomous ride-hailing services in California, as the California Public Utilities Commission (CPUC) approved the company’s application for a ride-service permit on the 18th.
According to the CPUC announcement, with this new permit, Tesla can transport its own employees using Tesla vehicles through pre-arranged trips. If the company intends to extend the service to the public, it must notify the regulatory agency in advance.
It’s worth noting that Tesla has not yet joined the CPUC’s autonomous vehicle passenger program. To operate commercial driverless ride-hailing services, the company must apply for certification under this program. Additionally, Tesla needs to obtain a full autonomous testing permit from the California Department of Motor Vehicles.
Earlier this year, Tesla CEO Elon Musk announced during a financial earnings call that the company would initiate driverless testing in Texas this summer. He claimed that Tesla had already conducted internal tests in the Bay Area for several months, with test vehicles equipped with safety drivers.
Musk has faced criticism over the years for repeatedly promising “fully autonomous vehicles within 1-2 years” that have yet to materialize. Skepticism persists regarding the maturity of Tesla’s autonomous driving technology, especially since the company’s FSDF approach has abandoned LiDAR, relying solely on cameras for recognition.
