Tesla has informed users of its upcoming robotaxi service in California’s Bay Area that initial rides will be conducted with safety drivers, according to a new terms-of-service agreement reviewed by Business Insider. The notification confirms earlier Reuters reporting that Tesla lacks the necessary permits to operate fully autonomous vehicles in the region.
Key Details:
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Safety Driver Requirement: The agreement states that rides in California will use Tesla’s Full Self-Driving (Supervised) system with a human driver present, while rides outside the state may be fully autonomous.
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Regulatory Hurdles: Unlike Waymo, Tesla has not applied for a California Public Utilities Commission (CPUC) permit to run a commercial robotaxi service without safety drivers.
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Limited Rollout: Tesla told regulators it will initially offer rides to employees’ friends and family and select public members under a charter service permit, but cannot yet charge fares.
Broader Context:
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CEO Elon Musk said this week Tesla is securing regulatory approvals for robotaxi launches in multiple markets, including the Bay Area.
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However, the company has not applied for the next-phase permits needed to test without safety drivers or collect fares—a requirement under California’s autonomous vehicle rules.
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Tesla’s FSD (Supervised) system still requires human oversight, unlike Waymo’s fully driverless operations.
Next Steps:
To advance, Tesla must:
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Complete a pilot phase (no fare collection allowed).
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Apply for a CPUC permit to operate autonomous vehicles with safety drivers.
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Eventually seek approval for fully driverless commercial services.
Tesla did not respond to Reuters’ request for comment.
