Tesla has received approval from California regulators to begin carrying passengers, a key step toward launching its ride-hailing service, Bloomberg reports.
The California Public Utilities Commission confirmed on Tuesday that Tesla was granted a transportation charter-party carrier permit, allowing the company to transport employees in company-owned vehicles before expanding the service to the public.
Tesla applied for the permit last month as part of Elon Musk’s plan to enter the ride-hailing market, putting the company in direct competition with Uber, Lyft, and Waymo. Musk has said Tesla will launch driverless ride-hailing in Austin in June and aims to offer the service in California by the end of the year, though details remain unclear.
Tesla is heavily investing in autonomous driving, robotics, and AI. Musk previously revealed that Tesla is already offering rides to employees in the Bay Area using a company-developed app, with a safety driver present.
The company is set to launch its Cybercab later this year and this new approval for California is pretty big news. Soon, its Robotaxi network will launch in Austin, Texas.
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