Tesla Secures Texas License for Robotaxi Service Amid Safety Lawsuit and Dojo Shutdown
ByAinvest
Sunday, Aug 10, 2025 6:56 am ET1min read
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The permit allows Tesla to compete directly with established ride-hailing giants such as Uber Technologies Inc. (UBER) and Lyft Inc. (LYFT). Tesla's autonomous ride-hailing service has been operational in Austin since late June, with human safety supervisors on board to intervene when necessary. The fleet comprises Model Y vehicles equipped with Tesla’s latest partially automated driving systems and is remotely monitored by employees in an operations center [2].
The Texas permit is the first of its kind for Tesla, enabling the company to operate a ride-hailing business anywhere in the state without the need for a human safety driver or valet on board. This move comes as Tesla expands its Robotaxi service to Phoenix, Arizona, where the company has applied for both autonomous vehicle testing/operating with a driver and testing/operating without a driver [2].
Elon Musk, CEO of Tesla, believes the move to Texas is a significant step in Tesla’s pursuit of autonomous ride-hailing services. He has stated that Tesla could serve half of the U.S. population by the end of 2025 with these services [1].
Meanwhile, Tesla has been facing legal challenges. The company was sued by shareholders alleging securities fraud for hiding safety risks with self-driving vehicles. Additionally, Tesla shut down its Dojo supercomputer team and signed a $16.5 billion chip deal with Samsung Electronics [1].
Tesla shares are down 18% this year, by far the worst performance among tech's megacaps. Despite this, the stock saw a modest uptick in after-hours trading following the Texas permit announcement, rising 0.14% to $330.10 [2].
References:
[1] https://www.cnbc.com/2025/08/08/tesla-robotaxi-scores-permit-to-run-ride-hailing-service-in-texas.html
[2] https://www.benzinga.com/markets/equities/25/08/47018924/tesla-scores-texas-robotaxi-permit-pitting-elon-musks-fleet-against-uber-lyft-in-autonomous-ride-hailing-race
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Tesla has been licensed to operate its Robotaxi ride-hailing business in Texas, creating competition for Uber and Lyft. The license is valid until August 6, 2026. Meanwhile, Tesla was sued by shareholders alleging securities fraud for hiding safety risks with self-driving vehicles. The company also shut down its Dojo supercomputer team and signed a $16.5 billion chip deal with Samsung Electronics.
Tesla Inc. (TSLA) has been granted a permit to operate its Robotaxi ride-hailing business in Texas, marking a significant milestone for the electric vehicle (EV) manufacturer. The Texas Department of Licensing and Regulation (TDLR) has authorized Tesla Robotaxi LLC to operate as a "transportation network company" until August 6, 2026 [1].The permit allows Tesla to compete directly with established ride-hailing giants such as Uber Technologies Inc. (UBER) and Lyft Inc. (LYFT). Tesla's autonomous ride-hailing service has been operational in Austin since late June, with human safety supervisors on board to intervene when necessary. The fleet comprises Model Y vehicles equipped with Tesla’s latest partially automated driving systems and is remotely monitored by employees in an operations center [2].
The Texas permit is the first of its kind for Tesla, enabling the company to operate a ride-hailing business anywhere in the state without the need for a human safety driver or valet on board. This move comes as Tesla expands its Robotaxi service to Phoenix, Arizona, where the company has applied for both autonomous vehicle testing/operating with a driver and testing/operating without a driver [2].
Elon Musk, CEO of Tesla, believes the move to Texas is a significant step in Tesla’s pursuit of autonomous ride-hailing services. He has stated that Tesla could serve half of the U.S. population by the end of 2025 with these services [1].
Meanwhile, Tesla has been facing legal challenges. The company was sued by shareholders alleging securities fraud for hiding safety risks with self-driving vehicles. Additionally, Tesla shut down its Dojo supercomputer team and signed a $16.5 billion chip deal with Samsung Electronics [1].
Tesla shares are down 18% this year, by far the worst performance among tech's megacaps. Despite this, the stock saw a modest uptick in after-hours trading following the Texas permit announcement, rising 0.14% to $330.10 [2].
References:
[1] https://www.cnbc.com/2025/08/08/tesla-robotaxi-scores-permit-to-run-ride-hailing-service-in-texas.html
[2] https://www.benzinga.com/markets/equities/25/08/47018924/tesla-scores-texas-robotaxi-permit-pitting-elon-musks-fleet-against-uber-lyft-in-autonomous-ride-hailing-race
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