- Arizona regulators awarded Tesla a ride-hailing permit.
- The permit allows Tesla to offer a paid robotaxi service in the entire state.
- The company previously expressed interest in running a robotaxi service within the Phoenix Metro area.
Tesla can now run a paid ride-hailing service in the entire state of Arizona, after regulators awarded the company a Transportation Network Company (TNC) permit. That’s a big step forward for the company’s autonomous vehicle ambitions, allowing it to expand far beyond the limited geofenced areas it currently operates in.
The maker of the wildly successful Model Y crossover applied for the permit that allows it to offer paid rides on November 13, according to an Arizona Department of Transportation (ADOT) spokesperson quoted by TechCrunch. Tesla met all the requirements and can operate as a TNC from November 17.
Tesla’s Robotaxi service is currently offering paid rides with safety operators in the passenger seat in Austin, Texas. The company also operates in California, though at a much more limited scale, as it lacks the necessary permits to run a commercial robotaxi service in the state. Because it only has a permit to operate a charter service in California, Tesla employees drive Model Y EVs to pick up riders.
The latest permit issued by Arizona regulators allows the Elon Musk-led company to offer paid autonomous rides in the entire state, as long as the vehicles meet the requirements. This does not allow the company to operate driverless vehicles, however. According to Reuters, Tesla currently has a permit to test and operate autonomous vehicles with a safety driver, but it applied for a permit that would allow it to test and operate robotaxis without safety monitors.
Under state law, companies that want to test autonomous vehicles with or without a driver need to apply for a permit and then follow a self-certification process. That doesn’t allow them to charge for rides, though, which is why a Transportation Network Company permit is also needed.
All of this is good news for Tesla and people who are keen on putting the company’s self-driving promises to the test, but it doesn’t necessarily mean that we’ll see Robotaxis without safety operators anytime soon.
The company did not provide a timeline for the rollout in Arizona. As for the areas where Tesla’s driverless Model Ys will be available, we don’t know for sure yet, but all signs point to the Phoenix Metro area sitting at the top of the list. The automaker said during the annual shareholders meeting earlier this month that it plans to expand the Robotaxi service to five more cities, including Phoenix, Las Vegas, Dallas, Houston and Miami.
When it does go online, Tesla's Robotaxi service will face competition from Waymo, the Alphabet-owned company that is currently the leading provider of driverless taxi rides in the United States. Waymo has been operating in the Phoenix Metro area since 2018, where it has a 315-square-mile service area.
Update November 20: A previous version of this story stated that Tesla was allowed to operate autonomous taxis without safety monitors in the state of Arizona. That is not currently the case, as the company is required to have safety monitors in the vehicle. We regret the error.
