The company has made a big bet on autonomous driving, robotics and artificial intelligence as the primary business of selling EVs struggles. (David Paul Morris/Bloomberg News)
Tesla Inc. was granted approval in California to begin carrying passengers as Elon Musk’s company takes steps toward offering ride-hailing services.
The California Public Utilities Commission said in an emailed statement March 18 that it approved the electric-vehicle maker’s bid for what’s known as a transportation charter-party carrier permit. That will allow Tesla initially to carry its employees on a prearranged basis in company-owned vehicles, before later transporting members of the public.
Bloomberg reported in February that Tesla had applied for the permit as it works to launch a promised ride-hailing business, opening a new revenue stream and putting it in competition with the likes of Uber Technologies Inc., Lyft Inc. and Waymo.
Musk has said Tesla would roll out driverless ride-hailing in Austin in June and aimed to offer it in California by the end of the year, without offering specific details.
The company has made a big bet on autonomous driving, robotics and artificial intelligence as the primary business of selling EVs struggles. Tesla is facing a significant sales slump thanks to its aging lineup and a growing backlash to the billionaire CEO’s close affiliation with President Donald Trump.
Musk said on a call with investors late in 2024 that the company was already offering transportation to employees in the Bay Area with a safety driver using a Tesla-developed app.
