“Tesla receives approval for limited operation of rental service in California”

In a significant development on the same day that SpaceX, led by Elon Musk, successfully retrieved two stranded astronauts from space, Tesla has been granted a Transportation Charter Permit (TCP) by the California Public Utilities Commission (CPUC) to operate passenger transportation services in California. This marks the company’s first step towards offering autonomous ridesharing services in the state, but there is still a long way to go to achieve this goal.

The TCP permit granted to Tesla allows for the provision of pre-arranged transportation services, such as shuttle services for tourists, according to CPUC. Vehicles operating under TCP permits are typically luxury vehicles, including Uber Black, luxury taxis, or private tour vehicles, which require expensive commercial insurance and have higher rental costs.

CPUC stated that Tesla will be allowed to operate rental car services with vehicles owned by Tesla and driven by Tesla employees; however, Tesla did not apply for an autonomous driving car program as of November last year. This means that the company has not been authorized to provide ride-hailing services to the public, and the permit does not include autonomous driving trips.

Tesla had originally planned to launch autonomous ridesharing services in California and Texas this year. The approval of the TCP can be seen as a significant milestone for the company towards achieving this goal. However, to offer rental car services to the public, Tesla will need further approval from the California Department of Motor Vehicles (DMV) and CPUC.

Currently, there are three companies approved for pilot autonomous ridesharing services in California, namely Waymo, WeRide AI, and Zoox. Among them, only Waymo is authorized to operate fully automated autonomous ridesharing vehicles, but with restrictions on the operating area; the other two companies are required to have a driver in the vehicle. Cruise was previously granted approval to operate but had its permit revoked due to a pedestrian injury incident.

In October last year, Tesla unveiled two rental car models – Cybercab and Robotaxi – which do not have pedals or a steering wheel, making them incompatible with California’s current regulations on autonomous driving vehicles. The Cybercab is expected to enter production next year, and until then, Tesla will use Model 3 and Model Y electric cars to initiate ride-hailing services this year in California and Texas.

Uber and Lyft are the two major players offering ridesharing services in California. Both hold Transportation Network Company (TNC) permits, allowing them to connect private vehicles with paying passengers through online applications on smartphones and other devices.