Tesla plans 'friends and family' car service in California, regulator says

During a recent earnings call, Tesla CEO Elon Musk hinted at plans to expand the company's nascent robotaxi service in the San Francisco Bay Area and other regions across the U.S. However, California regulators have clarified that Tesla cannot transport passengers using autonomous vehicles on public roads without a human driver present at all times. The California Public Utilities Commission (CPUC) stated in an email that Tesla is prohibited from testing or transporting the public, whether paid or unpaid, in an autonomous vehicle. Instead, Tesla can only operate its services with vehicles that have a driver. This means that the company must adapt its service to function more like a traditional taxi service rather than a fully autonomous one. Tesla currently holds a charter-party carrier permit in California, which allows it to provide a private car service with human drivers, akin to limousine or sightseeing services. Recently, the company notified the CPUC of its intention to expand operations under this permit to include services for the friends and family of employees, as well as select members of the public, throughout much of the Bay Area. Nevertheless, the CPUC reiterated that these services must involve non-autonomous vehicles. The California Department of Motor Vehicles (DMV) confirmed that Tesla has been operating under a drivered testing permit since 2014, which allows for the use of autonomous vehicles with a safety driver present, but prohibits the company from collecting fees. Safety drivers must be Tesla employees or designated individuals associated with the manufacturer. In Austin, Texas, Tesla is currently testing its robotaxi service using Model Y SUVs equipped with advanced automated driving technology. This limited operation occurs during daylight hours and under good weather conditions, specifically on roads with a maximum speed limit of 40 miles per hour. Tesla employees remotely supervise this service, which also includes a human safety supervisor seated in the front passenger position. Currently, only invited users participating in Tesla's early access program can utilize this service. Reports from Business Insider indicated that Tesla might extend its robotaxi service to the Bay Area as soon as this weekend, although the company did not respond to inquiries regarding this development. In a separate issue, the DMV has accused Tesla of misleading consumers about its driver assistance systems, previously branded as Autopilot and Full Self-Driving (FSD). The company has since rebranded these features as "FSD Supervised," emphasizing that both systems require the driver to maintain control at all times. However, user-generated content shared by Tesla on social media shows customers using FSD without hands on the wheel, raising concerns about potential consumer deception. The DMV is currently advocating for the suspension of Tesla's vehicle sales license in California, with discussions ongoing at the state’s Office of Administrative Hearings. As per California law, autonomous taxi services are regulated at the state level, leading to some local officials expressing frustration over the lack of communication from Tesla regarding its plans. Stephanie Moulton-Peters, a member of the Marin County Board of Supervisors, voiced her concerns about Tesla's transparency and the need for better communication with the community. Brian Colbert, another board member, echoed these sentiments, expressing disappointment over the insufficient information shared about the service launch. In contrast, Alphabet's Waymo has been proactive in securing necessary permits from both the DMV and CPUC for its driverless ride-hailing service, and has successfully expanded its service territory in California, contrasting with Tesla's current challenges.