Tesla, led by CEO Elon Musk, is making strides toward launching its own ride-hailing service in California. The company recently applied for a transportation charter-party carrier permit from the California Public Utilities Commission, aiming to compete with established players like Uber, Lyft, and Waymo.
While Musk has long expressed ambitions for autonomous transportation, Tesla plans to start with human drivers before transitioning to a driverless fleet. According to CBT News, the company has regulatory approval to test autonomous vehicles with safety drivers but has not yet applied for permits to deploy fully self-driving cars.
The move comes as Tesla seeks to diversify its revenue amid declining sales in its core electric vehicle business. The company hopes to leverage its technology and robotics expertise to drive future growth. However, launching a driverless taxi fleet in California remains uncertain due to stringent regulations.
Tesla’s entry into the ride-hailing market also puts it in direct competition with Uber, which is collaborating with Waymo to introduce autonomous rides in cities like Austin and Atlanta. Despite discussions between Musk and Uber CEO Dara Khosrowshahi, Tesla decided not to make its vehicles available on Uber’s platform.
Tesla’s application is still under review, and the company is focused on ensuring that its app and payment systems are ready for the rollout. Initially, the service will use existing Model 3 and Model Y vehicles.
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