Tesla, led by Elon Musk, has been granted permission to operate its Robotaxi service in Austin, Texas. This approval allows the company to run a ride-hailing business using vehicles equipped with an automated driving system, putting it in direct competition with ride-hailing companies such as Uber and Lyft.
The permit, issued by the Texas Department of Licensing and Regulation (TDLR), lists Tesla Robotaxi LLC as a licensed transportation network company in Texas until 6 August 2026. According to TDLR, the licence allows Tesla to operate its service anywhere in the state, including with automated motor vehicles, without the need for a human safety driver or valet inside the vehicle.
This decision follows earlier reports of Tesla’s robotaxis disobeying traffic rules during the company’s pilot programme in Austin. Although these incidents have not led to injuries or major property damage, they have drawn the attention of federal authorities.
Earlier this year, Tesla began offering a limited ride-hailing service in Austin to selected participants. Many of these early riders were social media influencers and analysts who create Tesla-related content on platforms such as X and YouTube.
The Austin fleet consists of Model Y cars fitted with Tesla’s latest partially automated driving technology. Each trip includes a human safety supervisor, referred to as a valet, in the front passenger seat, ready to take control if necessary. The vehicles are also monitored remotely by staff at an operations centre.
During a recent earnings call, Musk described himself as “pathologically optimistic” and said he believes Tesla could reach half of the United States population with autonomous ride-hailing services by the end of 2025.
However, concerns remain after several reports of the vehicles “misbehaving” on the road. In one case, Tesla content creator Joe Tegtmeyer said his robotaxi failed to stop for a train crossing signal and a lowering gate arm, prompting a Tesla employee in the car to take control. A spokesperson for the National Highway Traffic Safety Administration confirmed that the agency has spoken with Tesla about the incident.
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