Tesla to launch ‘friends and family’ car service in California, reveals regulator announcement.
During a recent earnings call, Tesla CEO Elon Musk hinted at the expansion of the company’s emerging robotaxi service to the San Francisco Bay Area and other U.S. cities. However, California regulators have made it clear that Tesla is not allowed to operate autonomous vehicles for passenger transport on public roads without a human driver present at all times. The California Public Utilities Commission (CPUC) confirmed that Tesla can only transport the public in non-autonomous vehicles, which requires a human driver.
This implies that Tesla’s new service will need to function similarly to traditional taxi services rather than fully autonomous robotaxis. Tesla maintains a charter-party carrier permit in California, enabling it to operate a private car service with human drivers, akin to limousine services. Recently, the CPUC received notice from Tesla that it plans to extend services to employees’ friends and family, as well as select members of the public throughout the Bay Area.
However, this service must be conducted using non-autonomous vehicles, according to the CPUC. In Austin, Texas, Tesla is testing a robotaxi service that utilizes Model Y SUVs equipped with the latest automated driving technology. This limited service operates only during the day and in optimal weather conditions, with a maximum speed of 40 miles per hour.
The operation is overseen by Tesla employees, and every ride includes a human safety supervisor. Meanwhile, concerns have arisen over Tesla’s marketing practices regarding its driver assistance systems. The California Department of Motor Vehicles has accused the company of misleading consumers about the capabilities of its systems like Autopilot and Full Self-Driving.
Tesla has changed the branding to “FSD Supervised,” indicating that these systems still require a driver to be ready to intervene at any moment. The ongoing discussions could potentially jeopardize Tesla’s vehicle sales license in California. Local officials have expressed frustrations over a lack of communication regarding Tesla’s plans.
Some community leaders, like Marin County Supervisor Stephanie Moulton-Peters, urge the company to engage more transparently with the public, emphasizing that community response to such innovations can be mixed. Ultimately, the regulatory landscape and public sentiment will play crucial roles in shaping the future of Tesla’s robotaxi ambitions.