Tesla’s Application for Transportation Service in California

Tesla has submitted an application to the California Public Utilities Commission (CPUC) for a permit to operate a transportation service within the state, marking a crucial step towards potentially launching a robotaxi service in the region.

The application, which was initially reported by Bloomberg, has been independently confirmed by TechCrunch with the CPUC. Tesla filed for a transportation charter-party carrier (TCP) permit in November 2024, which is currently pending approval.

Understanding TCP Permits

It’s essential to note that TCP permits differ from those held by ride-hailing companies like Lyft and Uber. A TCP permit requires the company to own the vehicles and employ drivers, as opposed to using personal vehicles and independent contractors. This is according to the CPUC, which oversees both human-driven and driverless ride-hailing services in California.

In contrast, Uber and Lyft hold transportation network company (TNC) permits, which enable them to connect drivers using their personal vehicles with passengers through an online-enabled platform.

Tesla’s Application and Future Plans

A CPUC spokesperson has confirmed that Tesla has not applied for a TNC permit and has also not participated in the agency’s Autonomous Vehicle Passenger Service program. However, this does not necessarily mean that Tesla is not planning to launch a driverless ride-hailing service.

In fact, holding a TCP permit is a prerequisite for participating in the autonomous vehicle passenger service program, suggesting that Tesla may still be moving forward with its plans for a driverless ride-hailing service.

Tesla’s Shift in Strategy

Tesla’s application to operate in California seems to contradict the company’s recent shift away from the state in favor of more favorable regulatory environments like Texas.

During a recent earnings call, CEO Elon Musk announced plans to launch a paid ride-hailing robotaxi service in Austin this June, using Tesla-owned vehicles and the upcoming “unsupervised” version of its Full Self-Driving software.

Additionally, Musk unveiled a purpose-built Cybercab prototype last October, designed without a steering wheel or pedals, further hinting at the company’s plans for a driverless ride-hailing service.