The California Public Utilities Commission (CPUC) has granted Tesla a transportation charter-party (TCP) carrier permit. While this approval does not yet authorize fully autonomous rides, it is the first of several necessary approvals needed for Tesla to establish a ride-hailing network.
As we reported last month, Tesla had applied for a TCP permit, which is traditionally associated with chauffeur-driven services. With the approval, Tesla is now allowed to operate company-owned vehicles with human drivers under specific conditions.
Initially, Tesla will use the permit to transport its employees on a prearranged basis using Tesla-owned vehicles. Tesla has indicated plans to transition to providing rides to the public in the future and will notify the CPUC once it begins public operations.
Unlike typical ride-hailing companies such as Uber and Lyft, which rely on independent contractors using personal vehicles, Tesla will own and maintain its entire fleet, giving it control over pricing, maintenance, and service quality.
While Tesla now has a TCP permit, the company has not yet applied for a Transportation Network Company (TNC) permit, which is required for ridesharing services that connect drivers with passengers through a smartphone app. Tesla’s application does not seek participation in CPUC’s Autonomous Vehicle (AV) Passenger Programs, meaning the company is not yet approved to offer driverless rides.
The TCP permit alone does not grant Tesla authority to operate autonomous vehicles for commercial service. To launch a driverless fleet, Tesla must first secure the necessary AV permits from the California Department of Motor Vehicles (DMV), which it has yet to obtain.
Tesla’s long-term goal is to deploy a fully autonomous robotaxi network, starting this summer in Austin and later this year in California. However, regulatory approvals remain a hurdle, particularly in California, where self-driving regulations are among the strictest in the U.S. Tesla’s current strategy resembles that of other autonomous vehicle companies like Waymo, which initially operated with human safety drivers before transitioning to fully driverless services.
The TCP permit suggests Tesla is taking a similar approach, using human-driven Tesla-owned vehicles before introducing full autonomy.
While California’s regulatory environment presents challenges, Tesla may find an easier path in Texas. Unlike California, Texas treats autonomous vehicles similarly to traditional vehicles, meaning Tesla could deploy robotaxis without extensive regulatory delays. Tesla has reportedly been in discussions with Austin city officials since mid-2024 to establish safety guidelines and train first responders ahead of a planned mid-2025 rollout in the city.
