Tesla brings its "Robotaxi" app to the Bay Area, with a driver behind the wheel

Previously

In June 2025, Tesla began invite-only robotaxi rides in South Austin with about 10 to 20 Model Ys and an employee in the front passenger seat. NHTSA contacted Tesla after videos showed erratic driving (Part 1).

July 2025 — Tesla has opened its Robotaxi app to invited riders in the Bay Area, but every car has a driver. Here's what changed since Part 1 (June 2025), what it cost, and what went wrong.

Cost and outcome (as of July 2025)

Service area: San Francisco to San Jose, per a map in a Tesla AI post. (ABC7)
Driver: a person behind the wheel using Tesla's self-driving software. (ABC7)
Permits: Tesla "has not applied for the necessary authorization to operate autonomous vehicles for public passenger service," per the CPUC. (ABC7)
Fleet size, fares and ride counts: not disclosed.

What Tesla launched

Musk confirmed early Thursday, July 31, that Tesla was moving ahead with its Robotaxi service in the Bay Area, ABC7 reported. He reshared a post from Tesla's AI account saying invitations were out. Riders hail a car through the Robotaxi app, and the service is invite-only.

Unlike in Austin, where the Tesla employee rides in the passenger seat, the Bay Area cars have a driver behind the wheel. ABC7 said the driver uses Tesla's self-driving software. TechCrunch later described the same Bay Area service as one "in which drivers use the company's advanced driver assistance software." The regulator's record settles what it is. In a July 25 statement to ABC7, the CPUC said charter-party carrier (TCP) permits, "which Tesla holds from the CPUC," "allow a human driver to drive a traditional vehicle (not an AV) for charter services," and that "Tesla does not hold a Drivered Pilot AV permit." Under California rules, that makes it a driver-operated charter service, not an autonomous one. (ABC7)

What the regulators say

The launch came less than a week after California told Tesla it lacked the permits to operate and charge for autonomous rides, ABC7 reported. The CPUC confirmed that Tesla "has not applied for the necessary authorization to operate autonomous vehicles for public passenger service-paid or unpaid-in the state."

According to ABC7, the CPUC said Tesla isn't allowed to test or transport the public in an autonomous vehicle, even with a driver. It may carry people only in a traditional, non-autonomous vehicle that requires a driver.

California's process is "very involved," experts told ABC7, and Tesla would have to clear hurdles before it could operate without a safety driver. ABC7 said it had asked the CPUC and the state Department of Motor Vehicles whether Tesla had obtained any new permits and was waiting to hear back. TechCrunch later explained, in December 2025, that California regulations mean Tesla will need to combine multiple permits to offer fully driverless rides there, and that Texas didn't then require that.

"What they're testing ultimately is, can they demonstrate a better safety record than human driving? That's that's really what's key," said Scott Moura, acting director of Berkeley's Institute of Transportation Studies.

The target

In July, Musk said Tesla's service would cover "half of the population of the U.S." by the end of 2025, TechCrunch later reported. At the end of July, the service was an invite-only pilot with safety staff in Austin and a driver-operated service in the Bay Area.

What's changed

The Robotaxi brand now covers two different things. In Austin, it means Tesla's software driving with an employee in the passenger seat. In the Bay Area, it means a human driver using the same app. Riders see one brand; regulators see two services with different rules. Neither service has published ride counts.

What went wrong

No autonomy permits in California. The CPUC says Tesla hasn't applied for them.
The name runs ahead of the service. "Robotaxi" in the Bay Area means a human driver.
The target is far off. Two small, invite-only services against a promise of half the U.S. population by year-end.
What we don't know yet: how many cars and drivers Tesla runs in the Bay Area, whether riders pay, and whether Tesla plans to apply for California's autonomous permits.

Our follow-up question for Tesla

Does Tesla plan to apply for the CPUC and DMV permits needed for driverless rides in California, and when?

Later developments (added Oct. 2026)

In a Jan. 30, 2026 filing to the CPUC (Rulemaking 25-08-013), Tesla wrote that it "does not currently possess the requisite permits to operate autonomous rideshare vehicles in California" and that, under its TCP permit, "all rides are conducted with a safety driver in the driver's seat using Tesla's SAE Level 2 Advanced Driver Assistance System (ADAS), Full Self-Driving (Supervised)." (CPUC filing)
Texas has changed its rules. Under Senate Bill 2807, effective Sept. 1, 2025, companies operating automated vehicles commercially in Texas have had to hold an active Texas Department of Motor Vehicles authorization since May 28, 2026. (TxDMV)

Sources

ABC7 San Francisco, “Tesla launches Robotaxi service in Bay Area with drivers, as questions surround autonomous permitting,” July 31, 2025. abc7news.com
Sean O'Kane, TechCrunch, “Tesla starts testing robotaxis in Austin with no safety driver,” Dec. 15, 2025. techcrunch.com
Zach Fuentes, Luz Pena and Brandon Behle, ABC7 San Francisco, “Tesla's Bay Area Robotaxi launch: California regulators say company has no AV permit,” July 25, 2025. abc7news.com
Tesla, Inc., “Comments of Tesla, Inc. on the Email Ruling Providing Prehearing Conference Questions for Parties,” CPUC Rulemaking 25-08-013, filed Jan. 30, 2026. docs.cpuc.ca.gov
Texas Department of Motor Vehicles, “Automated Vehicles Regulatory Program” (SB 2807 authorization requirements), accessed Oct. 2026. txdmv.gov
Earlier in this series: Part 1. /case/tesla-robotaxi-austin

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