Tesla has expanded its Robotaxi service in San Francisco by launching a new app available to the public, raising questions about regulatory compliance. The Tesla Robotaxi app officially went live on September 27, 2023, allowing users in the Bay Area, including San Francisco, Oakland, Berkeley, and parts of the Peninsula down to San Jose, to sign up for ride-hailing services. This development comes despite ongoing uncertainties regarding the necessary regulatory approvals for fully autonomous operations.

The app’s introduction follows a series of announcements from Elon Musk, Tesla’s CEO, who indicated the service would be available “in a month or two” back in July. Notably, his announcement did not explicitly mention the terms “autonomous” or “robotaxi,” which raised eyebrows among industry observers. Many speculate this omission relates to Tesla’s existing limousine service permit in California, while the company has yet to complete the required safety testing for its fully autonomous vehicles.

Regulatory Landscape and Safety Concerns

While the app allows for ride-hailing, the terms of service suggest that some rides may operate without a safety driver present. The terms state, “If your ride is taking place without a safety driver present in the driver’s seat, it is being conducted autonomously.” This language implies a potential shift toward fully autonomous rides, similar to what Tesla has tested in Austin, Texas. In Austin, rides reportedly began with safety operators in the passenger seat, a model that may continue in California.

Despite Musk’s assertions of regulatory compliance, reports indicate that Tesla had not applied for critical permits necessary for operating fully autonomous vehicles in California as of late July. According to Business Insider, neither the California Public Utilities Commission (CPUC) nor the California Department of Motor Vehicles (DMV) had approved Tesla for fully autonomous operations, nor for charging passengers in semi-autonomous vehicles with safety drivers. Instead, Tesla had suggested its intention was to provide a conventional transportation service akin to ridesharing platforms like Uber.

Emily Warren, a deputy secretary at the California State Transportation Agency, reached out to Tesla following media reports about the app launch, cautioning that the company only holds permits for conventional transportation services, not for autonomous vehicles. This situation mirrors the controversial launch of Uber’s self-driving service in 2016, which faced immediate regulatory backlash.

Community Concerns and Future Implications

Former San Francisco supervisor and current California Assemblymember Catherine Stefani expressed “deep concern” regarding the Robotaxi service. In an open letter to the DMV, she stated, “To date, it appears that Tesla has not completed even the most basic steps necessary to obtain a DMV Driverless Deployment permit.” Stefani emphasized that given the ongoing investigation by the National Highway Traffic Safety Administration (NHTSA) and safety issues observed in Tesla’s operations in Austin, there is insufficient justification for deploying this technology on public streets.

As regulatory scrutiny intensifies, the future of Tesla’s Robotaxi service is uncertain. Following the launch of the app, users reported being able to join the waitlist and receive rides within just three hours. Meanwhile, in Texas, new regulations for autonomous vehicle operation took effect on September 1, 2023, further complicating the landscape for Tesla’s service.

This unfolding situation highlights the tension between innovation in autonomous vehicle technology and the regulatory frameworks designed to ensure public safety. As Tesla pushes forward with its ambitious plans, stakeholders await clarification on the legalities surrounding this new service, particularly in light of the company’s past regulatory challenges.