Tesla's Robotaxi service is now operating in the Bay Area and Austin, but there's a catch—drivers are sitting behind the wheel because Tesla doesn't have the permits to run fully autonomous rides in California. Elon Musk confirmed the launch on X, saying invites are going out through Tesla's Robotaxi app for the invite-only service.

The service runs from San Francisco to San Jose using Tesla's self-driving software, but with a human safety driver present. Riders hail cars through the Tesla app just like they would with Uber or Lyft, except the car is running Tesla's Full Self-Driving stack instead of relying purely on human driving.

Here's where it gets messy. The California Public Utilities Commission told Tesla less than a week before this launch that the company lacks the proper permits to operate and charge for autonomous rides. The CPUC confirmed Tesla hasn't even applied for the necessary authorization to operate autonomous vehicles for public passenger service—paid or unpaid.

So what Tesla's doing is technically operating a traditional ride-hailing service with drivers, not an autonomous vehicle service. That keeps them within the bounds of what's allowed while they figure out the permitting situation. It's a workaround, but it lets them start building the operational infrastructure and gathering real-world data.

The permitting process in California is involved. Tesla's going to have to demonstrate a better safety record than human driving before the state lets them remove the safety drivers. Professor Scott Moura from Berkeley's Institute of Transportation Studies pointed out that's the key metric—can Tesla prove their autonomous system is safer than humans?

Waymo's been operating fully driverless rides in San Francisco for years now, completing over 100,000 trips per week. They went through the entire permitting process, proved their safety record, and got approved. Tesla's going to have to do the same thing, and that takes time.

What's exciting here is that Tesla's finally bringing real competition to the Bay Area robotaxi market. Waymo's had a monopoly on fully autonomous rides in San Francisco, and that's not good for anyone. Competition drives innovation, pushes pricing down, and forces both companies to improve their technology and service.

Tesla's approach is different from Waymo's. Waymo uses Uber's app for distribution in some markets, while Tesla's building its own ride-hailing platform. That means they control the entire stack—the vehicle, the autonomy software, and the app. If they execute, that's a huge advantage.

The timing is interesting too. Uber's been expanding its AV partnerships with Waymo in Austin and Atlanta, and Lyft's working with Tensor Auto to deploy autonomous vehicles starting in 2027. Tesla launching now, even with safety drivers, shows they're serious about competing in this space.

Don't bet against Elon Musk getting the permits eventually. Yeah, the regulatory process is slow and Tesla's starting late compared to Waymo, but Musk has a track record of pushing through obstacles. SpaceX faced regulatory hell, Tesla's Autopilot faced constant scrutiny, and both ended up succeeding. The robotaxi permits are just another bureaucratic hurdle.

The autonomous vehicle future isn't coming—it's already here. Waymo's doing 100,000+ rides per week, Amazon's Zoox is launching in Vegas, Lyft's building AV infrastructure in Nashville, and Tesla's deploying in the Bay Area and Austin. Within five years, calling a human driver will feel as outdated as calling a horse-drawn carriage. The technology works, the economics are undeniable, and every major company is racing to scale. Human drivers aren't competing with AVs—they're being replaced by them.

The real question is how long it takes Tesla to prove their safety case to California regulators. Waymo had the advantage of moving slowly and methodically, building relationships with regulators over years. Tesla's trying to move faster, which means more friction with the CPUC and DMV.

What matters for San Francisco riders is that they're finally getting options. Right now, if you want a fully autonomous ride, you're calling a Waymo. Once Tesla gets permitted, you'll have choices. That's good for consumers, good for the technology, and good for accelerating the shift away from human-driven cars.

The Bay Area is becoming the testing ground for multiple autonomous vehicle companies. Waymo and Uber are expanding, Lyft's planning its own AV fleet and partnering with Waymo for Nashville, Amazon's Zoox launched in Las Vegas, and now Tesla's in the game. This is what competition looks like in the autonomous vehicle space, and it's going to push everyone to improve faster than they would in isolation.

Tesla starting with safety drivers is smart. They can build the operational systems, train their routing algorithms with real Bay Area traffic data, and refine the user experience while working through the permit process. By the time they get approved for driverless operation, they'll already have the infrastructure running.

The invite-only approach also makes sense—start small, iron out the bugs, then scale. That's the same playbook Waymo used when they first launched in San Francisco.

Source: ABC7 News