Tesla has applied for regulatory approval to launch a ride-hailing service in California, a move that could open a new revenue stream as its core electric vehicle business faces challenges.
The company submitted an application last year for a transportation charter-party carrier permit from the California Public Utilities Commission (CPUC), according to documents reviewed by Bloomberg. This type of permit would allow Tesla to own and operate its own fleet of vehicles, similar to Waymo, Alphabet Inc.’s self-driving taxi unit.
The application suggests Tesla is preparing to enter the ride-hailing market, putting it in competition with Uber, Lyft, and Waymo. CEO Elon Musk has long promoted Tesla’s robotaxi ambitions, but the company has not yet received approval to test or deploy fully autonomous vehicles in California.
While Musk has said a driverless ride-hailing service could launch in Austin as soon as June, Tesla’s California plans remain uncertain. The company’s recent filings discuss driver’s license verification and drug-testing protocols, signaling that human drivers may be involved—at least in the early stages.
A Tesla spokesperson confirmed the application is pending, but details on approval or a launch timeline remain unclear. Tesla’s senior regulatory counsel, Casey Blaine, did not respond to requests for comment.
California has some of the strictest autonomous vehicle regulations in the U.S., which has slowed progress for companies like Waymo and Cruise, the now-suspended robotaxi division of General Motors. Unlike Uber and Lyft, which allow drivers to use personal vehicles, Tesla’s application would require a company-owned fleet.
Musk has repeatedly promised a fully autonomous Tesla ride-hailing network, but the company does not yet have a self-driving vehicle ready for commercial use. Tesla offers driver-assistance technology, but it still requires a human behind the wheel.
Tesla’s path to launching a robotaxi service may be easier in Texas, where regulations for autonomous vehicles are less restrictive than in California. The company will still need a ride-share license from state regulators, but as of February, it had not yet applied.
Meanwhile, Uber is expanding its autonomous ride-hailing offerings, partnering with Waymo to launch self-driving rides in Austin and Atlanta this year. Uber CEO Dara Khosrowshahi said he discussed a potential partnership with Musk, but Tesla opted not to integrate its vehicles with Uber’s platform.
Tesla’s move into ride-hailing could reshape the transportation industry, but it remains to be seen whether regulators will approve the plan—and how soon Tesla can deliver on Musk’s long-promised vision of a robotaxi fleet.
