Tesla Inc. (NASDAQ:TSLA) has been granted a permit to operate a ride-hailing service in Texas through its subsidiary, Tesla Robotaxi LLC.
Check out the current price of TSLA stock here.
What Happened: Tesla's Robotaxi LLC has been authorized to operate as a "transportation network company" in Texas through Wednesday, according to the Texas Department of Licensing and Regulation's website. A CNBC report said the permit, issued this week, allows Tesla to compete with ride-hailing giants Uber Technologies Inc. (NYSE:UBER) and Lyft Inc. (NASDAQ:LYFT).
The electric vehicle manufacturer’s autonomous ride-hailing service has been operational in Austin since late June, with human safety supervisors on board to intervene when necessary. The fleet comprises Model Y vehicles, all equipped with Tesla’s latest partially automated driving systems. These vehicles are also remotely monitored by employees in an operations center.
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The Texas permit is the first of its kind for Tesla, enabling the company to operate a ride-hailing business anywhere in the state without the need for a human safety driver or valet on board.
Why It Matters: This news comes in the wake of Tesla’s expansion of its Robotaxi service to Phoenix, Arizona, where the company applied for both autonomous vehicle testing/operating with a driver and testing/operating without a driver. Elon Musk, CEO of Tesla, believes the move to Texas is a significant step in Tesla’s pursuit of autonomous ride-hailing services. It could serve half of the U.S. population by the end of 2025.
Uber CEO Dara Khosrowshahi welcomed Tesla’s Robotaxi entry into the market, stating that there will be no winner-take-all and that the future market is large enough for multiple players to succeed.
Price Action: According to Benzinga Pro data, after closing at $329.65 with a 2.29% gain, TSLA stock saw a modest uptick in after-hours trading, rising 0.14% to $330.10.
With momentum in the 80th percentile, Benzinga's Edge Stock Rankings show Tesla's stock trending higher in both the medium and long term. Here's how it performs on other key metrics.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
