Tesla Launches Robotaxi Service Bay Area Amid Permit Restrictions

Tesla has launched its Robotaxi service in the San Francisco Bay Area, but the vehicles currently require a driver in the seat to supervise the autonomous driving system, as the company lacks permits for fully driverless operation in California. CEO Elon Musk has promised that by the end of 2025, half of the U.S. population will have access to the Robotaxi service, including plans to integrate private Tesla vehicles into the network, though this remains a future goal with unresolved details. The service has faced operational challenges, such as causing traffic delays during passenger pickups in Austin, highlighting the current limitations of Tesla's autonomous technology. Regulatory hurdles remain significant, with California officials warning Tesla against unauthorized Robotaxi operations, and Musk's move of Tesla headquarters to Texas reflecting ongoing conflicts with California regulators. Tesla's broader business faces headwinds as well, with a recent 16% drop in car sales, reduced regulatory credits, and rising investor concerns about the company’s growth and profitability. Despite these setbacks, Musk continues to emphasize the long-term vision of an autonomous taxi fleet as key to Tesla's future strategy.