Tesla, led by Elon Musk, has received official approval to run its Robotaxi service in Austin, Texas. With this permit, Tesla can start a ride-hailing business across the state, similar to Uber and Lyft, but using cars with automated driving technology.
The Texas Department of Licensing and Regulation (TDLR) confirmed that Tesla Robotaxi LLC is now registered as a “transportation network company” until August 6, 2026. The permit allows Tesla to operate anywhere in Texas and even use cars without a human driver on board.
This decision comes despite reports that some Tesla robotaxis have broken traffic rules during trial runs in Austin. While no injuries or major damage have been reported, the incidents have drawn attention from federal safety regulators.
Earlier this year, Tesla tested its ride-hailing service in Austin with a limited group of people, mostly social media influencers and analysts who create Tesla-related content. The test fleet used Model Y cars with Tesla’s latest partially automated driving system. Each ride had a human safety supervisor in the front passenger seat and was also monitored remotely.
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During Tesla’s recent earnings call, Musk said he believes the company could make its autonomous ride-hailing service available to half of the U.S. population by the end of 2025.
However, several incidents have raised concerns. In one case, a Tesla robotaxi reportedly didn’t stop at a train crossing signal, and a Tesla employee had to take control. The National Highway Traffic Safety Administration (NHTSA) has confirmed it has spoken to Tesla about these safety issues.
