Tesla is getting ready to bring its driverless robotaxis to California and Arizona after a limited rollout in Austin, Texas, last month. CEO Elon Musk said on his social media platform X that the robotaxis could start operating in the San Francisco Bay area within a month or two, once they get the necessary approvals. Meanwhile, Tesla plans to expand its Austin service area this weekend.
The company has also reached out to Arizona’s Department of Transportation to begin the process for certification to offer autonomous ride-sharing in the Phoenix area. Arizona officials expect to make a decision on Tesla’s application, covering operations both with and without a driver, by the end of this month.
Tesla’s plans come at a time when Musk is focusing the company more on futuristic technology like self-driving cars, AI, and robots, as traditional vehicle sales face challenges. However, Musk has a history of predicting autonomous driving milestones that don’t quite happen on schedule.
In addition to the robotaxis, Musk announced that Grok, an AI chatbot developed by his startup xAI, will be coming to Tesla vehicles soon, possibly by next week.
Tesla’s shares jumped nearly 5% recently in New York, although the stock has fallen about 23% so far this year.
The Austin launch featured a small group of Tesla Model Y vehicles serving select shareholders and supporters in a limited area. The company has said California is next on the list after Texas. Tesla applied late last year for a permit from the California Public Utilities Commission to operate as a transportation charter-party carrier. Tesla also told California’s DMV it will start by giving employees pre-arranged rides with safety drivers. But as of now, Tesla hasn’t sought driverless testing or deployment permits from the DMV.
The DMV confirmed Tesla has held a permit for public road testing with safety drivers since 2014. They said if Tesla wants to run driverless tests or services, it needs the right permits.
Regulators are watching Tesla’s robotaxi rollout closely. The U.S. auto safety agency is investigating reports that Tesla robotaxis broke traffic rules on their first day in Austin.
So far, only a few cars have been in service, but Musk has said Tesla aims to operate about a thousand vehicles in the coming months. Eventually, Tesla plans to introduce a new Cybercab model designed specifically for robotaxi service, which won’t have pedals or a steering wheel.
Industry experts think Tesla’s move could shake up the ride-hailing market, challenging companies like Waymo and Uber. One analyst said a fast, smooth rollout without major crashes could boost Tesla’s stock and change how people use shared ride services.
For now, Tesla is quietly pushing forward with driverless taxis, setting its sights on new cities and bigger fleets in the near future.