Tesla obtains permit to operate ride-hail service in Arizona
A Tesla Inc. vehicle on Oltorf Street in Austin, Texas, on June 22, 2025. robotaxi.
Tim Goessman | Bloomberg | Getty Images
Tesla’s The state’s department of transportation said it has received permission to operate a ride-hailing service in Arizona.
The electric vehicle company applied for a “transportation network company” permit on Nov. 13 and was approved Monday, ADOT said in an emailed statement. Additional permits will be required for Tesla to provide robotaxi service in Arizona.
In July, Tesla filed to conduct autonomous vehicle testing and operations in Phoenix, with or without human safety drivers. A month ago, Tesla launched a robotaxi pilot with safety valets and remote operators in Austin, Texas. Tesla also operates a more traditional car service in the San Francisco Bay Area.
Tesla did not immediately respond to a request for comment.
Tesla plans to remove human safety drivers from its vehicles in Austin before the end of this year. The company aims to operate a commercial robotaxi service in Phoenix and several other US cities before the end of 2026.
Tesla cars equipped with autonomous driving systems were involved in seven reported crashes following the company’s pilot study in Texas, according to the National Highway Traffic Safety Administration’s website.
Rivals including alphabet Waymo in the US and Baidu’s China’s Apollo Go is way ahead in the emerging robotaxi-hailing market. Waymo operates a sizable commercial operation in the Phoenix area with at least 400 autonomous vehicles, the company previously told CNBC. In May, Waymo said it surpassed 10 million driverless rides offered to drivers across the U.S.
Baidu said: earnings update On Tuesday, Apollo said its Go service “delivered 3.1 million fully driverless operational rides in the third quarter of 2025,” representing 212% growth from the previous year.
Musk had been promising to “solve” autonomy for years before Tesla could achieve its goals. The richest person in the world continued his assertive statements.
At the company’s 2025 shareholder meeting earlier this month, Musk said the “perfect application” for autonomous driving technology is when people can “text and drive” or “sleep and drive.”
“Before we allow the car to be driven recklessly, we have to make sure it is very safe,” Musk said. “We’re on the cusp of that. I know I’ve said that a few times. We’re really at that point.”
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