Tesla gets approval to start offering robotaxi rides in California as stock bounces back

Tesla moved one step closer to its goal of operating a fleet of autonomous robotaxis on Tuesday when California regulators granted Elon Musk’s electric car maker a license to begin offering rides in the state.The permit is a prerequisite for applying to operate an autonomous ride-hailing service in California, but a CPUC spokesperson said the current permit “does not authorize them to provide rides” in autonomous vehicles, and does not allow Tesla to operate a ride-hailing service to the public.Instead, the limited license issued by the California Public Utilities Commission grants Tesla permission to transport its employees using Tesla-owned vehicles on a prearranged basis.Tesla’s stock — which has been hammered with weeks of punishing losses that have slashed its value by nearly half — rose by nearly 4% as of 1:30 p.m.

ET on Wednesday.While this authorization is an initial move toward Tesla’s long-term goal of deploying a fleet of self-driving cars, it is just one of many approvals the company will need before the technology will be available to the public in California.Waymo, a subsidiary of Google’s parent company Alphabet, remains the only company offering autonomous rides to the public in California.Its erstwhile competitor, Cruise, previously offered self-driving taxi services primarily in the San Francisco Bay Area, but a series of accidents involving the vehicles prompted state regulators to suspend its permit in late 2023.More than a year later, Cruise’s parent company General Motors decided to discontinue its investment in the robotaxi program after spending over $10 billion since acquiring it in 2016.Tesla has long been seen as a potential major contender in the autonomous vehicle industry.Musk has expressed confidence in the financial impact of robot taxis, stating that they could add trillions of dollars to Tesla’s market valuation.Despite optimism over the company’s autonomous driving ambitions, Tesla’s stock has faced recent ...