SAN FRANCISCO: Tesla CEO Elon Musk announced plans to expand the company’s robotaxi service to the San Francisco Bay Area within the next two months, pending regulatory approvals.
The move follows a limited test rollout in Austin, Texas, last month, where a small fleet of autonomous vehicles operated under strict conditions, including a safety monitor in the front seat.
Musk revealed the expansion plans on his social media platform X, responding to a user inquiry about updates. He stated that Tesla would first widen the service area in Austin before targeting the Bay Area.
The timeline depends on regulatory clearance, which remains uncertain given California’s stringent autonomous vehicle laws.
Tesla’s push into robotaxis comes as the company faces declining electric vehicle sales amid rising competition and controversies surrounding Musk’s political stance. The success of autonomous driving technology is critical to Tesla’s long-term valuation, which heavily relies on AI-powered innovations like robotaxis and humanoid robots.
However, commercializing self-driving cars has proven challenging. Competitors like Waymo have taken years to expand cautiously, while others, including General Motors’ Cruise, have halted operations due to regulatory and safety concerns.
Waymo currently operates in several U.S. cities, including San Francisco, with a fleet of around 1,500 vehicles.
In California, Tesla must secure permits from the Department of Motor Vehicles and the Public Utilities Commission before launching a paid robotaxi service.
The company received initial approval from the CPUC in March but still faces hurdles. Meanwhile, early tests in Austin reportedly encountered traffic issues, raising questions about scalability. - Reuters
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