Tesla brings its robotaxi service to San Francisco (sort of)

By Trevor Mogg Published July 31, 2025

Tesla has rolled out a ride-hailing service in San Francisco, but the lack of a permit to allow it to accept fares from passengers means that it can’t yet call it a robotaxi service.

The first Tesla Model 3 and Model Y cars hit the streets of San Francisco on Thursday,  just over a month after the launch of its robotaxi service in Austin, Texas, where it does have the proper permits.

A video uploaded by a passenger to X shows a Tesla employee with his hands touching the steering wheel as the car drove along in FSD (Full self-driving) mode, Tesla’s advanced driver-assist feature. 

The California Public Utilities Commission (CPUC) stated recently that at the current time, Tesla has to have a safety driver behind the wheel for testing, as well as to transport members of the public, Reuters reported. 

The regulator added that the automaker has to undertake a pilot phase that imposes no charges on passengers before applying for full-autonomous permits, a process that Reuters says took competitors such as Waymo “years” to complete.

Tesla is inviting employees’ friends and family, and select members of the public, to participate in the early stage of the service.

In June, the automaker launched its first robotaxi service in Austin, with a safety monitor sitting in the front passenger seat, not the driver’s seat. And unlike the Tesla’s ride-hailing cars in San Francisco, Austin’s Model Y vehicles have “robotaxi” branding on the side. 

Musk said recently that Tesla is planning to get permits to launch its robotaxi service in a number of states, including not only California but also Nevada, Arizona, and Florida. 

In California, strict regulations have prevented Musk from experiencing the kind of rapid robotaxi rollout that was possible in Texas. Essentially, the San Francisco launch appears to be a strategic move by Tesla to maintain momentum in the autonomous-vehicle sector.