
Arizona regulators granted Tesla a ride-hailing permit this week, paving the way for the automaker to start a robotaxi service in the state.
According to a spokesperson for the Arizona Department of Transportation speaking to TechCrunch, the automaker submitted an application for a Transportation Network Company permit on November 13. ADOT reports that Tesla fulfilled the requirements for operating as a TNC and has been permitted as of November 17.
The permit represents the last regulatory requirement for launching a robotaxi service in Arizona, which has evolved into a center for testing and developing autonomous vehicle technology. Waymo, the self-driving company owned by Alphabet and the leading robotaxi provider in the U.S., has been providing a service in the Phoenix area since 2018. Currently, Waymo robotaxis operate across a 315 square mile service area in the greater Phoenix metro area.
Under Arizona law, companies must apply and then adhere to a self-certification process to assess autonomous vehicles with or without a driver. However, this doesn’t authorize the company to run a robotaxi service with paid fares. Any company seeking to run a ride-hailing service, whether using human drivers or robots, must secure a Transportation Network Company permit.
In June, Tesla reached out to the Arizona Department of Transportation about autonomous vehicle ride-sharing services to commence the certification process. At that time, a spokesperson informed TechCrunch that the company expressed interest in operating within the Phoenix Metro area.
Tesla subsequently applied for permission to test/operate autonomous vehicles both with and without a driver. An ADOT spokesperson verified that Tesla completed Arizona’s self-certification process in September to test autonomous vehicles.
Tesla CEO Elon Musk has identified Arizona as one of several states for the company’s planned robotaxi service.
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Tesla introduced a limited robotaxi service in South Austin in June. Although the service has expanded, a human safety operator remains in the passenger seat.
Tesla also initiated a ride-hailing-like service in California, though it lacks the necessary permits to run a commercial robotaxi service in the state. Instead, the company, which does possess a permit to offer a charter service, utilizes employees driving Tesla Model Y vehicles with its advanced driving assistance system, called Full Self-Driving Supervised, to transport riders.
