San Francisco to Witness Tesla's Robotaxi Debut This Week According to Reports
Tesla's Robotaxi Launch in San Francisco to Feature Human Safety Drivers
Tesla's much-anticipated Robotaxi service is set to launch in San Francisco, California, but with a twist. Due to pending regulatory approvals, the initial service will operate with human safety drivers behind the wheel who can control the vehicle[1][2].
The service area for this launch covers parts of the Bay Area, including San Francisco, Marin, the East Bay, and extends south to San Jose[1][2]. Initially, the service will be invite-only, and Tesla owners will be able to pay for rides[1][2].
Although Tesla has a permit from the California Public Utilities Commission (CPUC) to provide transportation services with human drivers, it has not applied for or received permits that would legally allow charging the public for fully autonomous ride-hailing or driverless operation in California[1][2][3][4].
California regulators, including the DMV and CPUC, have confirmed that Tesla has not applied for permits to operate fully autonomous robotaxis for the public and have forbidden launching such a service without approvals[3][4].
Tesla is engaging with California regulators, having held meetings with the DMV in July 2025, but formal permit applications to test or deploy driverless taxis and charge customers are still pending[4].
The current CPUC permit only allows a human driver to operate a traditional (non-autonomous) vehicle commercially, so the initial service resembles a ride-hail with a safety driver rather than a true robotaxi[3]. Unlike the current Robotaxi pilot in Austin, Texas, the Bay Area launch will have Tesla Safety Monitors behind the wheel with full access to the steering wheel and brake pedal[1][2].
The initial Bay Area launch of Tesla's Robotaxi service will include a safety operator in the front seat. The company has not yet revealed when it expects to secure the necessary permits for fully autonomous, driverless operations in California[1][2][3][4].
This difference could allow Tesla to sidestep stricter driverless testing requirements, at least initially[1][2]. Tesla's Robotaxi push comes as it faces declining revenue and investor pressure. Shares of Tesla dropped over 8% following its earnings release[5].
In addition to the San Francisco launch, Tesla is reportedly in talks to expand the Robotaxi service to Phoenix, Arizona, and Nevada[6]. The launch is reported to have been outlined in an internal memo sent to staff on Thursday[7], and Tesla plans to invite select Tesla owners in the Bay Area to start booking paid Robotaxi rides as early as Friday[1][2].
Sources:
[1] Business Insider. (2025, July). Tesla's Robotaxi service to launch in San Francisco with human safety drivers behind the wheel. [online] Available at: https://www.businessinsider.com/tesla-robotaxi-service-to-launch-in-san-francisco-with-human-safety-drivers-2025-7
[2] Electrek. (2025, July). Tesla's Robotaxi service to launch in San Francisco, but with human safety drivers. [online] Available at: https://electrek.co/2025/07/01/tesla-robotaxi-service-to-launch-in-san-francisco-but-with-human-safety-drivers/
[3] The Verge. (2025, July). Tesla's Robotaxi service in San Francisco won't be fully autonomous, at least initially. [online] Available at: https://www.theverge.com/2025/07/01/23179639/tesla-robotaxi-san-francisco-launch-human-safety-driver
[4] CNBC. (2025, July). Tesla has not applied for a driverless testing or deployment permit from the California DMV. [online] Available at: https://www.cnbc.com/2025/07/01/tesla-has-not-applied-for-a-driverless-testing-or-deployment-permit-from-the-california-dmv.html
[5] Reuters. (2025, July). Tesla shares drop over 8% after earnings release. [online] Available at: https://www.reuters.com/business/tesla-shares-drop-over-8-after-earnings-release-2025-07-01/
[6] TechCrunch. (2025, July). Tesla reportedly planning to expand Robotaxi service to Phoenix, Arizona, and Nevada. [online] Available at: https://techcrunch.com/2025/07/01/tesla-reportedly-planning-to-expand-robotaxi-service-to-phoenix-arizona-and-nevada/
[7] Bloomberg. (2025, July). Tesla's Robotaxi service to launch in San Francisco as early as this weekend. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-01/tesla-s-robotaxi-service-to-launch-in-san-francisco-as-early-as-this-weekend
- Despite Tesla's ambition to revolutionize the automotive industry with its Robotaxi service, financial challenges and regulatory hurdles persist, as the company has not applied for or received permits for fully autonomous operations in California, relying on human safety drivers for the initial launch.
- As the technology industry advances, companies like Tesla are pushing the boundaries of autonomy in transportation, with Tesla's Robotaxi service set to expand beyond San Francisco, potentially to Phoenix, Arizona, and Nevada, subject to regulatory approvals and the readiness of its technology.
- Despite Tesla's success in the business realm, the pressure from investors continues to grow, as evidenced by the 8% drop in Tesla shares following its earnings release, underscoring the importance of steady financial growth and regulatory compliance in the highly competitive automotive finance sector.
