Tesla plans ‘friends and family’ car service in California, regulator says

In a profit call this week, the Tesla CEO, Elon Musk, caused an expansion of the incipient Robotaxi service of his company to the San Francisco Bay area and other US markets.

But California regulators are making it clear that Tesla is not authorized to transport passengers on public roads in autonomous vehicles and would require a human driver in control at all times.

“A Tesla cannot prove or transport the public (paid or unpaid) in an AV with or without driver,” said the California Public Services Commission to CNBC in an email on Friday. “To Tesla can transport the public (paid or not paid) in a non -AV, which, of course, would have a driver.”

In other words, Tesla’s service in the state will have to be more taxi than Robot.

Tesla has what is known in California as a charter carrier permit, which allows you to run a private car service with human drivers, similar to limousine companies or tourism services.

The commission said that it received a notification from Tesla on Thursday that the company plans to “extend operations” under its permission to “offer service to friends and family members of employees and select members of the public”, in much of the Bay area.

But under Tesla’s permission, that service can only be with no AVS, said the CPUC.

The California Motorized Vehicle Department told CNBC that Tesla has had a “driver test permit” since 2014, allowing the company to operate AVS with a present security driver, but not collect rates. Security drivers must be employees of Tesla, contractors or designated from the manufacturer under that permission, said the DMV.

In Austin, Texas, Tesla is currently testing a Robotaxi service, using its model SUVs and equipped with the company’s latest software and driving hardware. The limited service operates during the hours of the day and in good weather, on the roads with a speed limit of 40 miles per hour.

Robotaxis in Austin is remotely supervised by Tesla employees and include a human security supervisor in the front passenger seat. The service is now limited to guest users, who accept the terms of the “Early Access Program” of Tesla.

On Friday, Business Insider, citing an internal memorandum of Tesla, informed that Tesla told the staff that he planned to expand his Robotaxi service to the San Francisco Bay area this weekend. Tesla did not respond to a request for comments on that report.

In a separate matter in California, the DMV has accused Tesla of deceptive consumers about the capabilities of its driver assistance systems, previously marketed under the names of the full automatic and autonomous pilot (or FSD).

Tesla now calls her premium driver assistance functions, “supervised FSD.” In the owners’ manuals, Tesla says that the autopilot and supervised FSD are “practical” systems, which require a driver at the wheel, ready to direct or stop at all times.

But in the videos generated by the user shared by Tesla in X, the company shows customers who use hands -free FSD while they are dedicated to other tasks. The DMV argues that Tesla’s license to sell vehicles in California must be suspended, with ongoing arguments until Friday at the State Administrative Hearing Office in Oakland.

According to California State Law, autonomous taxi services are regulated at the state level. Some city and county officials said Friday that they were outside the circuit regarding a possible Tesla service in the state.

Stephanie Maulton-Peters, a member of the Marin County Supervisors Board, said in a telephone interview that he had not heard of Tesla about his plans. She urged the company to be more transparent.

“I certainly hope you tell us and I think it’s a good commercial practice to do that,” he said.

Maulton-Perers said he was undecided with robotaxis in general and that he was not sure of how Marin County, located north of San Francisco, would react to the Tesla service.

“The news of change always has mixed results in the community,” he said.

Brian Colbert, another member of the Marin County Supervisors Board, said in an interview that he is open to the idea that Tesla’s service is something good, but was disappointed by the lack of communication.

“They should have done a better job to inform the community about the launch,” he said.

Google Spin-Off Waymo, which is far ahead of Tesla in the Robotaxi market, obtained a series of DMV and CPUC permits before starting its non-driver transport service in the state.

Waymo received an implementation permit without CPUC driver in 2023, which allows him to charge for travel in the state. The company has been seeking amendments both to its implementation permits without DMV driver and CPUC, since it expands its service territory in the state.



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