A Tesla robotaxi on Olthoff Street in Austin, Texas, on June 22, 2025.
Tim Gosman | Bloomberg | Getty Images
tesla The Arizona Department of Transportation says it has received a permit to operate a ride-hailing service in Arizona.
In an emailed statement, ADOT said the electric vehicle company applied for a “transportation network company” permit on Nov. 13 and was approved Monday. Tesla will need additional permits to operate its robotaxi service in Arizona.
In July, Tesla applied to test and operate self-driving cars with and without a human safety driver in Phoenix. A month ago, Tesla began testing robotaxis in Austin, Texas, with safety personnel and remote operators. Tesla also operates more traditional car services in the San Francisco Bay Area.
Tesla did not respond to a request for comment.
Tesla plans to remove human safety drivers from its vehicles in Austin by the end of this year. The company aims to operate commercial robotaxi services in Phoenix and several other U.S. cities by the end of 2026.
Tesla cars equipped with self-driving systems have been reported to have been involved in seven crashes since the company began testing in Texas, according to the National Highway Traffic Safety Administration’s website.
including competitors of the alphabet America’s Waymo and Baidu’s China’s Apollo Go is far ahead in the nascent robotaxi ride-hailing market. Waymo operates a large commercial operation in the Phoenix area with a fleet of at least 400 self-driving cars, the company previously told CNBC. Waymo announced in May that it had provided more than 10 million driverless trips to passengers across the United States.
Baidu announced in Tuesday’s earnings update that its Apollo Go service “delivered 3.1 million fully unmanned trips in the third quarter of 2025,” representing 212% year-over-year growth.
Mr. Musk has long promised that Tesla would “solve” autonomy without ever hitting the mark. The world’s richest man continued to make lofty declarations.
At the company’s 2025 shareholder meeting earlier this month, Musk said the “killer app” for self-driving technology would be the ability for people to “drive while texting” or even “drive while they sleep.”
“We need to make sure the car is very safe before we let people drive without paying attention,” Musk said. “We’re right on the brink. I know I’ve said it several times, but we’re right on the brink.”
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