Tesla has been granted a Transportation Charter Permit (TCP) by the California Public Utilities Commission (CPUC), paving the way for the electric vehicle giant to operate a transportation service in the state. This development marks a significant step for Tesla, whose CEO Elon Musk has announced plans to launch a robotaxi service using its own fleet vehicles. Initially, Tesla will utilize the TCP permit to transport employees on a pre-arranged basis, while maintaining ownership of the vehicles and employing drivers.
The CPUC, which oversees human-driven and driverless ride-hailing services in California, clarified that the TCP permit allows Tesla to own and operate the vehicles with hired drivers. However, it does not authorize Tesla to engage in autonomous vehicle testing or deployment. This means that for Tesla to offer driverless rides, it must acquire additional permits from the California Department of Motor Vehicles (DMV).
Tesla's fleet is equipped with an "unsupervised" version of its Full Self-Driving software, which is yet to be released. Despite this, Tesla does not currently have the authority to provide driverless rides for testing or deployment. The company has assured the CPUC that it will notify them when it transitions to transporting members of the public.
Tesla's application for the TCP permit, submitted in November 2024, does not include seeking participation in the CPUC's Autonomous Vehicle Passenger Programs. This indicates that while Tesla is preparing to launch its robotaxi service, it is taking measured steps within the regulatory framework set by California authorities.
The TCP permit issued to Tesla is distinct from those held by traditional ride-hailing companies like Lyft and Uber. While these companies operate under different regulations, Tesla's permit specifically addresses the ownership of vehicles and employment of drivers under its charter.