Tesla just launched a ride-hailing service in the Bay Area – but don’t call it a robotaxi.
The issue started with Elon Musk’s promises to shareholders that Tesla would lead the way as an AI and robotics company by rolling out fully autonomous robotaxis and humanoid robots. So far, that vision hasn’t materialized at scale.
Earlier this year, Tesla kicked off a limited robotaxi test in Austin, Texas, with Tesla employees behind the wheel. Musk recently said a Bay Area robotaxi service would launch “in a month or two,” pending regulatory approval. 
The launch followed a quick check with the California DMV, which revealed Tesla hasn’t even applied for permits necessary for a fully autonomous robotaxi service.
Instead, Tesla’s new Bay Area ride-hailing service uses human drivers — employees behind the wheel. It’s not autonomous in any form. Musk’s brother and Tesla board member Kimbal Musk called them robotaxis on social media, but regulators would view any driverless operation as illegal.
Tesla is clearly focused on optics here, giving the appearance of robotaxi progress without the regulatory green light.
The current ride-hailing setup:
- Tesla vehicles operated by employees
- No driverless mode active
- No permit applications for robotaxi operation submitted
A Tesla spokesperson confirmed the DMV has met with Tesla to discuss future autonomous vehicle testing plans but no permits are filed yet.
This move buys Musk time with shareholders hungry for robotaxi traction — but the fully driverless dream remains elusive.
Meanwhile, other mobility news:
- Flexport sold the Convoy freight tech platform for $250 million, a massive return after buying it for $16 million.
- Israel startup AIR raised $23 million for its eVTOL aircraft.
- LG Innotek invested $50 million for a 6% stake in lidar startup Aeva.
- Aurora hit 20,000 driverless truck miles with its Q2 update.
- The Boring Company plans a 10-mile “loop” tunnel in Nashville, funded privately.
- Ford teases new affordable EVs coming August.
- Joby Aviation and L3Harris partner on a gas-turbine VTOL for defense markets.
- Lyft will roll out autonomous shuttles with Austria’s Benteler Group in 2026.
- Waymo preps robotaxi launch in Dallas next year, despite two vehicles crashing at a Phoenix lot this week.
- Chinese AV firm WeRide got a Saudi Arabia autonomous driving permit.
TechCrunch Disrupt alert:
Waymo co-CEO Tekedra Mawakana will join the Disrupt Stage in San Francisco, October 27–29 for a deep dive on the future of autonomous vehicles.
Image Credits: Slava Blazer Photography
