Tesla Robotaxi Gains Permit to Operate Ride-Hailing Service in Texas

Tesla has been granted a permit to run a ride-hailing service in Texas, allowing it to compete with Uber and Lyft. The permit, issued by the Texas Department of Licensing and Regulation, allows Tesla Robotaxi LLC to operate until August 2026. Tesla has been running a limited ride-hailing service in Austin since June, using Model Y vehicles equipped with partially automated driving systems. The company plans to expand its autonomous ride-hailing services nationwide by the end of 2025.

Tesla has been granted a permit to run a ride-hailing service in Texas, allowing the electric vehicle maker to compete with established companies like Uber and Lyft. The permit, issued by the Texas Department of Licensing and Regulation (TDLR), allows Tesla Robotaxi LLC to operate until August 6, 2026 [1].

Tesla has been running a limited ride-hailing service in Austin since late June. The select few passengers have mostly been social media influencers and analysts. The Austin fleet consists of Model Y vehicles equipped with Tesla's latest partially automated driving systems. The company has been operating the cars with a human safety supervisor in the front passenger seat tasked with intervening if there are issues with the ride. The vehicles are also remotely supervised by employees in an operations center [1].

The Texas permit is the first to enable Tesla to run a "transportation network company." According to TDLR, this kind of permit lets Tesla operate a ride-hailing business anywhere in the state, including with "automated motor vehicles," and doesn't require Tesla to keep a human safety driver or valet on board [1].

Tesla's autonomous vehicle efforts have faced a number of challenges across the country, including federal probes, product liability lawsuits, and recalls following injurious or damaging collisions that occurred while drivers were using the company's Autopilot and FSD (Full Self-Driving) systems [1]. However, the Texas permit represents a significant step forward for the company's robotaxi ambitions.

Elon Musk has characterized himself as "pathologically optimistic" and believes Tesla could serve half of the U.S. population by the end of 2025 with autonomous ride-hailing services [1]. The Texas permit could pave the way for Tesla to expand its autonomous ride-hailing services nationwide by the end of 2025.

References:
[1] https://www.cnbc.com/2025/08/08/tesla-robotaxi-scores-permit-to-run-ride-hailing-service-in-texas.html