Business Desk 
Aug 03, 2025
In a bid to establish itself as a strong ride-hailing player in the US, Tesla has expanded its robotaxi service to San Francisco.
However, it currently lacks the necessary permit to accept passenger fares, which prevents it from branding the service as a robotaxi.
As part of Tesla's ride-hailing expansion, the first Tesla Model 3 and Model Y vehicles began operations on Thursday, shortly after the launch of a robotaxi service in Austin, Texas.
A video shared on X (formerly Twitter) demonstrated a Tesla employee touching the steering wheel while the car operates in Full Self-Driving (FSD) mode.
The California Public Utilities Commission (CPUC) has stated that Tesla must have a safety driver present during testing and when transporting the public.
On top of that, the company is bound to conduct a pilot phase that allows free rides before it can apply for fully autonomous permits, a lengthy process that has taken competitors like Waymo several years.
Tesla is currently inviting employees’ friends and family, alongside select members of the public, to participate in this early stage of the service. In June, Tesla launched its first robotaxi service in Austin, featuring a safety monitor in the front passenger seat.
Elon Musk has indicated plans to secure permits for robotaxi services in several states, including California, Nevada, Arizona, and Florida.
Strict regulations in California are said to have restricted the rapid rollout like the Texas one, making the San Francisco launch a move to remain competitive in the autonomous vehicle sector.
