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American Focus > Blog > Tech and Science > Tesla wants to bring robotaxis to San Francisco. Here’s what’s standing in the way.
Tech and Science

Tesla wants to bring robotaxis to San Francisco. Here’s what’s standing in the way.

Last updated: July 25, 2025 7:00 pm
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Tesla wants to bring robotaxis to San Francisco. Here’s what’s standing in the way.
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Tesla is set to launch a more limited version of its robotaxi service in San Francisco this weekend, following an initial rollout in Austin, Texas, as reported by Business Insider. The company will be sending invites to Tesla owners to participate in testing the service.

However, Tesla’s actions may potentially violate state regulations in California, where two state agencies regulate autonomous vehicles. The California Department of Motor Vehicles oversees the testing and deployment of autonomous vehicles, requiring permits for various stages of testing. While Tesla holds a permit for testing with a human safety operator, it currently lacks permits for driverless testing or deployment. Only three companies, including Mercedes-Benz, Nuro, and Waymo, hold permits for driverless deployment in the state.

Moreover, Tesla does not possess the necessary permits from the California Public Utilities Commission for autonomous passenger services. The company holds a Transportation Charter Party permit for traditional vehicle charter services with human drivers, but not for autonomous vehicle operations.

The push into California by Tesla comes amid legal challenges, with the DMV attempting to prevent the company from selling vehicles in the state due to disputes over self-driving capabilities. Additionally, Tesla is facing a lawsuit related to deaths linked to its Autopilot driver assistance system.

Tesla’s Full Self-Driving software, which is intended to power the robotaxi network, has yet to be fully proven. The current version of the service in Austin is limited to specific areas with a safety operator present in the vehicle to intervene if necessary. Despite Tesla’s ambitions to expand to other states like Florida and Arizona, challenges remain in meeting regulatory requirements and ensuring the safety of autonomous operations.

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Overall, Tesla’s foray into autonomous vehicle services highlights the complex regulatory landscape and technical challenges associated with deploying such technology. As the company navigates these hurdles, the future of its robotaxi service remains uncertain.

[Source: Business Insider]

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