Tesla has submitted an application for a permit to operate robotaxis in California.

      Tesla has sought a permit from California regulators with the aim of launching an autonomous ride-hailing service.

      As per documents obtained by Bloomberg, Tesla filed an application with the California Public Utilities Commission (CPUC) late last year for a transportation charter-party carrier permit. This designation means that Tesla would completely own and manage its fleet, unlike other ride-hailing companies.

      However, this does not imply that the Cybercab we saw in October will be available for rides anytime soon. Although this is the same permit utilized by Waymo, Tesla's negotiations with California officials also address topics such as driver records and drug testing, indicating that its ride-hailing service may include drivers—at least initially.

      To operate or even test a self-driving fleet, Tesla must receive additional approval from the California Department of Motor Vehicles (DMV). So far, Tesla has not done this. The DMV has stated that Tesla is allowed to test autonomous vehicles in the state, but only if a self-driving tester or safety driver is present. Reuters also reports that other permits are necessary before Tesla can begin charging for any ride-hailing service, regardless of whether it is autonomous.

      There is no universal operator's license for ride-hailing services; it is contingent on specific needs and business models. For instance, Lyft and Uber use their drivers' personal vehicles and have different permits compared to Waymo, which operates a robotaxi service in San Francisco. However, the DMV retains the authority to suspend these permits at any time, as evidenced by General Motors' Cruise service, which faced suspension after several incidents, including a hit-and-run involving a pedestrian. Following these events, Cruise's CEO resigned, and GM shut down the company in December.

      This move is not so much a change in Tesla's strategy but rather another potential source of revenue. Tesla CEO Elon Musk's recent political endeavors have left his electric vehicle business struggling. In the U.S., investors are apprehensive as Tesla's stock has declined by about 40%, and car sales are facing challenges. Tesla's sales in Europe have fallen even more drastically, including a 63% drop in January in France, one of its largest markets in the EU. Bloomberg reports that February's sales were similarly disappointing, with a 45% decrease across Europe, despite a 37% increase in overall EV registrations.

      According to Bloomberg, additional income from Tesla's robotaxis could start coming in as soon as June. In Texas, where the licensing process for autonomous vehicles is comparable to that of conventional human-operated vehicles, Musk mentioned that the driverless car service would be available in Austin. He emphasized that there is still "a bunch of work that needs to be done to ensure the whole thing works efficiently." However, as of February, the Texas Department of Licensing and Regulation had not been approached.

      In the interim, an app-based ride-hailing service (with a driver) has been made available to Tesla’s Bay Area employees. Musk indicated that public service in California would commence by the end of the year. If any Tesla employees want to share their experiences regarding this, they are encouraged to reach out.

      Have any tips? Send them to [email protected]