Tesla wants to bring robotaxis to San Francisco. Here’s what’s standing in the way.

Tesla is set to introduce a more limited version of its robotaxi service in San Francisco this weekend, following an initial rollout in Austin, Texas, last month. Reports indicate that Tesla will invite select owners to participate in testing this service. However, the company's plans may run afoul of state regulations. Current laws in California, overseen by two state agencies, mandate that all autonomous vehicle testing and deployment must be properly permitted. The California Department of Motor Vehicles (DMV) requires permits for three stages: testing with a driver, testing without a driver, and full driverless deployment. While Tesla possesses a permit for testing vehicles with a human operator, it lacks authorization for driverless testing or deployment, and as of midweek, had not applied for the necessary additional permits. Competitors such as Mercedes-Benz, Nuro, and Waymo currently hold the required driverless deployment permits, which Tesla does not. Moreover, Tesla has not secured the appropriate approvals from the California Public Utilities Commission (CPUC), which regulates the commercial aspects of ride-hailing services. Tesla holds a Transportation Charter Party permit for traditional vehicle services but does not have the necessary permits for passenger transport using autonomous vehicles. According to CPUC spokesperson Terrie Prosper, the absence of an Autonomous Vehicle (AV) authorization means Tesla cannot legally test or deploy its robotaxis, regardless of whether rides are free or a human safety driver is present. The company has not even applied for a “Drivered Pilot AV permit,” further complicating its ability to operate its robotaxis legally. The move into California comes amidst ongoing legal challenges for Tesla, including a lawsuit concerning the company's claims about its vehicles' self-driving capabilities. Additionally, Tesla is currently facing trial over incidents linked to its Autopilot system. The company has yet to demonstrate that its Full Self-Driving software is ready to sustain a robotaxi network. While Tesla has been running a limited robotaxi service in Austin since June 22, it has been far from the ambitious plans outlined by CEO Elon Musk. Initially starting with about 10 vehicles, the service operates primarily in Austin's downtown area and requires a safety operator to intervene in case of potential hazards. Musk's long-promised vision of autonomous travel remains unfulfilled; he once asserted that Tesla's technology would enable a car to travel from Los Angeles to New York autonomously, a feat yet to be realized. Looking ahead, Musk has indicated ambitions to expand the robotaxi service to Florida and Arizona, with the certification process for testing in Arizona already underway.