Tesla plans to expand its robotaxi service to the San Francisco Bay Area “in a month or two”, depending on regulatory approvals, according to CEO Elon Musk. The company has already tested a limited version of the service in Austin, Texas, but faces stricter regulations in California.
The successful expansion of robotaxis is crucial for Tesla’s future as sales of its aging electric vehicle lineup have slumped. Musk has bet on robotaxis and humanoid robots powered by artificial intelligence to drive the company’s trillion-dollar valuation.
However, commercializing autonomous vehicles has been harder than anticipated due to high costs, tight regulations, and investigations that have forced other companies to shut down. Waymo, Alphabet’s driverless robotaxi service, is currently available in several cities, including San Francisco.
Tesla needs permits from California’s Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) to operate a fully autonomous robotaxi service that charges customers. The company has already received some approvals but awaits final clearance.
Musk previously mentioned Tesla would rapidly expand its robotaxi service to other US cities, but faced traffic problems and driving issues during its public test in Austin. Despite these challenges, the successful expansion of robotaxis remains crucial for Tesla’s future success.
Source: https://www.reuters.com/business/autos-transportation/tesla-expand-robotaxi-service-san-francisco-bay-area-within-two-months-2025-07-10