Tesla has received a ride-hailing permit from Arizona regulators, opening the door for the automaker to begin operating a robotaxi service in the state. A spokesperson with the Arizona Department of Transportation confirmed that Tesla applied for a Transportation Network Company permit on November 13. The automaker met all requirements and was officially permitted as of November 17.
This permit is the final regulatory step needed to launch a robotaxi service in Arizona, a state that has become a hub for autonomous vehicle technology testing and development. Waymo, the Alphabet-owned self-driving company and the dominant robotaxi provider in the United States, has operated a service in the Phoenix area since 2018. Today, Waymo robotaxis cover a service area of 315 square miles in the greater Phoenix metro area.
Under Arizona state law, companies follow a self-certification process to test autonomous vehicles with or without a driver. However, that process alone does not permit a company to operate a commercial robotaxi service that charges for rides. Any company wanting to operate a ride-hailing service, whether human or robot driven, must apply for a Transportation Network Company permit.
Tesla first contacted the Arizona Department of Transportation in June regarding autonomous vehicle ride-sharing services to begin the certification process. The company expressed interest in operating within the Phoenix Metro area. Tesla later applied for permits to test and operate autonomous vehicles both with a driver and without a driver. The company went through Arizona’s self-certification process in September to test autonomous vehicles.
Arizona is among several states that Tesla CEO Elon Musk has targeted for the company’s robotaxi service. In June, Tesla launched a limited robotaxi service in South Austin. While that service has grown, the company still uses a human safety operator in the passenger seat. Tesla also launched a pseudo-ride-hailing service in California, although it lacks the proper permits to operate a commercial robotaxi service there. Instead, the company, which holds a permit to operate a charter service, uses employees driving Tesla Model Y vehicles equipped with its Full Self-Driving Supervised system to pick up riders.