Tesla Granted Permit for Employee-Driven Taxi Fleet in California
Overview of the Permit Approval
On Tuesday, the California Public Utilities Commission approved Tesla’s application for a charter-party carrier (TCP) permit, enabling the electric vehicle manufacturer to run a fleet of company-owned taxis operated by its employees. This marks a significant development towards Tesla’s vision of operating autonomous taxis in the future.
Key Restrictions of the Permit
While Tesla’s new permit allows for the operation of these taxis, it comes with specific limitations:
- The permit is restricted to company employees driving Tesla vehicles.
- Full Self Driving (FSD) technology cannot be utilized for these operations at this stage.
- Unlike Waymo’s driverless taxis, Tesla’s current operations will not feature any autonomous vehicles.
Future Plans for Public Transportation
According to a spokesperson for the commission, Tesla plans to initially use the permit for transporting employees. The company is expected to notify the commission when it intends to extend its services to the general public. Currently, Tesla has not sought a ride-sharing permit, known as a Transportation Network Company (TNC) permit, which would have allowed it to operate similarly to platforms like Lyft or Uber.
Company’s Stance Amidst Public Scrutiny
The approval for Tesla’s taxi operations comes at a time of heightened public scrutiny towards CEO Elon Musk, particularly regarding his interactions with government officials, including former President Trump. Multiple protests have occurred at Tesla facilities, responding to various corporate practices and policies. Some demonstrators have gone so far as to vandalize property, prompting remarks from California Attorney General Pam Bondi condemning such actions as domestic terrorism.
Market Response and Stock Performance
Following the announcement of the permit approval, Tesla’s stock experienced a minor increase, trading at $234—up approximately 4% by Wednesday morning. However, it is important to note that Tesla’s share prices remain nearly 40% lower than their year-to-date performance.