Tesla (TSLA.US) secures first license for ride-hailing services, paving the way for Robotaxi in California.

Tesla (TSLA.US) recently received approval in California to start passenger operations, marking a significant step for the electric vehicle maker to offer ride-hailing services. The California Public Utilities Commission (CPUC) said in an email statement on Tuesday that it approved the electric vehicle maker's transportation carrier permit (TCP). The permit will first allow Tesla to use its own vehicles to transport employees on a prearranged basis, and then expand to the public. Tesla applied for the permit last month, aiming to launch its promised ride-hailing business, a new revenue stream, and compete with Uber (UBER.US), Lyft (LYFT.US) and Waymo, as Elon Musk said the company would launch self-driving ride-hailing services in Austin in June and in California by the end of the year, but did not provide details. Notably, the new permit is different from the one used by ride-hailing companies, which offer similar services through smartphone apps and charge fees. The CPUC said the permit does not allow Tesla to provide passenger services using autonomous vehicles. Tesla's stock reversed its decline in after-hours trading and rose more than 1% as of writing. Musk revealed during a call with investors at the end of last year that the company was already providing transportation services for employees in the Bay Area using a Tesla-developed app and operated by safety drivers. The company did not immediately respond to a request for comment. Analysts believe that Tesla's launch of human-driven ride-hailing services in California could pave the way for its eventual introduction of Robotaxi services. Waymo already operates a self-driving fleet in San Francisco. As its core business of selling electric vehicles is facing difficulties, Tesla is heavily betting on autonomous driving, robotics and artificial intelligence. The company is facing a serious sales decline amid an aging product line and growing opposition to Musk's close ties with U.S. President Donald Trump.