Tesla is set to launch its robotaxi service in San Francisco this weekend, but the company faces significant regulatory hurdles. The initial rollout began last month in Austin, Texas, and Tesla plans to send invites to Tesla owners to test the service.
However, Tesla’s actions may violate state regulations, even with a human safety driver behind the wheel. The California Department of Motor Vehicles requires permits for all three stages: testing with a driver, testing without a driver, and driverless deployment. Tesla holds a permit for testing autonomous vehicles with a human safety operator but not for driverless testing or deployment.
Additionally, the company lacks proper permits from the California Public Utilities Commission, which regulates commercial aspects of ride-hailing and chartered transportation by humans as well as those steered by autonomous vehicle systems. The CPUC has issued separate permits for companies like Mercedes-Benz, Nuro, and Waymo, but Tesla does not hold one.
The push into California comes at a time when the DMV is trying to stop Tesla from selling vehicles in the state due to a years-long lawsuit over self-driving claims. Tesla is also facing lawsuits related to Autopilot’s capabilities and deaths. The company has yet to prove that its Full Self-Driving software can power a robotaxi network, despite running an invite-only version of the service since June 22.
The San Francisco launch will likely be limited compared to Austin’s downtown core and main corridors, where the service currently operates with safety operators in the front passenger seat. Tesla has not disclosed details on its plans for expansion beyond California and has yet to secure necessary permits for autonomous services.
Source: https://techcrunch.com/2025/07/25/tesla-wants-to-bring-its-robotaxis-to-san-francisco-heres-whats-standing-in-the-way