Tesla robotaxi cleared for ride-hailing in Texas

Elon Musk’s Tesla has secured a permit from the Texas Department of Licensing & Regulation (TDLR) to operate a ride-hailing service in the state. The move, which pits the electric vehicle giant directly against established players like Uber and Lyft, clears a path for its long-awaited Robotaxi service to expand its operations.

According to the TDLR website, "Tesla Robotaxi LLC" has been granted a license to operate as a "transportation network company" until August 6, 2026. This approval is a crucial development under a new state law, which takes effect on September 1, that regulates autonomous ride-hailing services in the same manner as those with human drivers.

The new law imposes additional permitting and oversight requirements, which Tesla's license now satisfies.

While the permit allows Tesla to operate its service statewide, it's important to note that it doesn't automatically classify the company's vehicles as fully autonomous. A TDLR spokesperson clarified that a separate authorization from the Texas Department of Motor Vehicles (DMV) is still required for the official classification of a vehicle as autonomous.

Tesla has already been running a limited ride-hailing pilot program in Austin since late June, using a fleet of Model Y vehicles with human safety supervisors on board.

This new permit is a critical step in moving beyond that small-scale test and scaling its service. The company’s CEO, Elon Musk, has previously stated a goal of having a fully driverless service that could serve half of the U.S. population by the end of 2025. While this seems far from reach, the Texas permit is a key piece of that ambitious timeline.

The news comes amidst a busy time for the company, including a recent shareholder lawsuit and the reported shutdown of its Dojo supercomputer team.