Elon Musk said that his company Tesla will expand its robotaxi services to San Francisco Bay Area in a time span of one or two months. The company is waiting for the approvals from the regulatory authorities.
This announcement came when Musk response to a user’s query on his microblogging platform X. The enquiry was about the expansion of Tesla beyond there recent pilot projects to Austin and Texas. The
Tesla CEO Elon Musk said that the company plans to expand its robotaxi service to the San Francisco Bay Area “in a month or two,” pending regulatory approvals.
The announcement came via Musk’s response on X to a user inquiry about expansion beyond Austin, Texas, where Tesla launched a limited pilot in June. The early test project included limited vehicles with selected passengers and in-car safety monitors.
Regulatory Hurdles in California
Compared to Texas, California has strict requirements for the operation of an autonomous vehicle. And, to run a comprehensive automated commercial robotaxi service in California, Tesla must obtain various approvals. These approvals must be directed both from the California Department of Motor Vehicles and the California Public Utilities Commission.
The CPUC granted Tesla an initial permit in March, but few other regulatory steps are required for further operations.
Competition and Technical Challenges
By launching its fully automated taxi, Tesla is entering into a highly competitive space which is occupied by Alphabet’s Waymo. Alphabet is the parent company of Google. Waymo operates about 1,500 autonomous vehicles in cities including San Francisco, Los Angeles, and Phoenix.
Waymo has expanded its footprint cautiously, however, Tesla aims to scale rapidly. Early reports from the Austin trial showed multiple traffic issues, raising concerns about vehicle readiness on roads.
The success of the robotaxi program is critical yet important for Tesla, as the company faces decline in electric vehicle sales and increase in market pressure.
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Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
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