Tesla Prepares to Launch Robotaxi Service in San Francisco Bay Area

Tesla is preparing to launch its Robotaxi service in the San Francisco Bay Area as soon as this weekend, according to an internal memo sent to staff on Thursday. The memo indicates that the company has accelerated its timeline and will invite select Tesla owners to use the paid service, which will initially operate within a geofenced area covering Marin, much of the East Bay, San Francisco, and as far south as San Jose.

The initial phase will include safety drivers in the vehicles, who will be able to control the car using the steering wheel and brakes. Elon Musk confirmed during Tesla's quarterly earnings call on Wednesday that the first deployments in the Bay Area will have a safety operator in the front seat. In Austin, where the service launched last month, Tesla uses safety monitors in the passenger seat and remote operators to intervene if necessary.

A spokesperson for the California Department of Motor Vehicles stated that the agency recently met with Tesla, but the company has not yet applied for a permit for driverless testing or deployment. The California Public Utilities Commission has granted Tesla a permit to provide transportation services for employees, but as of July 10, the company had not applied for permits to operate a commercial service for the public. The CPUC did not immediately respond to requests for comment.

Tesla's Robotaxi service in Austin began with just over 10 vehicles in a restricted area and remains invite-only. The company has modified Model Y vehicles for the program, equipping them with additional cameras and telecommunications units. Musk said Tesla is seeking regulatory approval in California and plans to expand the service to other states, including Florida and Arizona, as well as internationally.

Tesla recently reported its largest quarterly revenue decline in a decade, with shares falling more than 8% on Thursday. The company has also increased its autonomous testing in California, registering over 100 vehicles and more than 200 test drivers for its permit. Earlier this month, Tesla released a video showing a Model Y completing a fully autonomous delivery from its Austin factory to a customer's home.