The city of Palo Alto is currently in discussions with Tesla to explore the possibility of testing Tesla’s newly unveiled robotaxi, known as the “Cybercab,” on city streets, a partnership that would offer benefits for both Tesla and the city.
Currently Palo Alto has a rideshare program called Palo Alto Link. The service was created to address the void left by the discontinuation of the city’s free shuttle service during the COVID-19 pandemic, offering affordable transportation across the city, with some rides even being free.
However, Palo Alto Link is facing a funding shortfall. A $2 million grant by the Santa Clara County Valley Transportation Authority that helped launch the service is set to expire soon, leaving the city to bear the majority of operational costs.
With the service’s growing popularity, city officials are now considering a potential partnership with Tesla, hoping that the company’s robotaxi could supplement the existing service and ease the financial burden on the city’s budget.
According to a report by Palo Alto Online, Council member Greg Tanaka, who recently attended Tesla’s robotaxi unveiling event, is optimistic that Tesla’s autonomous vehicles could serve as a solution to the growing financial dilemma.
“Tesla has the technology, they have the hardware but they’re looking at test areas. That’s where Palo Alto comes in” Tanaka said.
However, even if the city wants to move forward with the idea, regulatory challenges remain as both the California Public Utilities Commission (CPUC) and the California Department of Motor Vehicles (DMV) must approve the operation and testing of autonomous vehicles within the state.
Palo Alto is currently home to Tesla’s global engineering headquarters.
