Tesla's Drive into Driverless Ride-Hailing Faces Regulatory Roadblocks

Tesla CEO Elon Musk announced plans to launch driverless ride-hailing services in California and Texas next year. The rollout will face regulatory challenges, particularly in California, contrasting with Texas's lenient requirements. Currently, Tesla lacks a permit for testing without a driver in California.

Tesla is gearing up to introduce driverless ride-hailing services in California and Texas by next year, as announced by CEO Elon Musk. This ambitious plan is expected to face significant hurdles from regulators, particularly in California, where stringent permits are required.

Although Tesla shares soared by nearly 19% following optimistic sales forecasts, the company still lacks the necessary permit to operate fully autonomous vehicles without a driver in California. The California DMV confirmed Tesla has not applied for such a permit since utilizing a safety driver permit in 2019.

In contrast, Texas, with fewer regulatory requirements, offers a more straightforward path to deployment. However, Tesla's plan faces national scrutiny after the NHTSA opened an investigation into the company's Full Self-Driving system following accidents. Despite these challenges, Tesla aims to set a new benchmark in driverless technology.

(With inputs from agencies.)