The California Public Utilities Commission (CPUC) granted Tesla a permit on Tuesday, allowing the company to operate a transportation service within the state. This marks the beginning of a lengthy regulatory process that could ultimately lead to the company’s approval to operate a robotaxi service in California.

The permit, which Tesla applied for in November 2024, is specifically designed for human-driven vehicles and does not cover autonomous vehicle testing or deployment. It is distinct from the permits held by ride-hailing companies such as Lyft and Uber, which operate under a different regulatory framework.

Tesla has been awarded a transportation charter permit (TCP), which enables the company to own and operate vehicles using its own employees as drivers, according to the CPUC. This type of permit is typically used for prearranged transportation services, such as roundtrip sightseeing tours. The CPUC regulates both human-driven and driverless ride-hailing services in the state.

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

Initially, Tesla plans to utilize its TCP permit to transport employees on a prearranged basis, using vehicles owned by the company. The company has agreed to notify the CPUC when it transitions to transporting members of the public.

Notably, Tesla’s application does not seek participation in the CPUC’s Autonomous Vehicle Passenger Service Programs, either with or without a driver. However, this does not preclude the company from applying for such permits in the future. If Tesla does pursue these permits, it will also need to obtain necessary approvals from the California Department of Motor Vehicles (DMV), which regulates autonomous vehicle testing and deployment in the state.

Currently, Tesla does not possess the necessary authority from the DMV to offer driverless rides for testing or deployment purposes, according to state regulators.

Meanwhile, Tesla is planning to launch a robotaxi service in Austin, Texas. CEO Elon Musk has announced that the service will commence in June, utilizing the company’s own fleet vehicles equipped with the upcoming “unsupervised” version of its Full Self-Driving software.