Tesla Updates Robotaxi App Users About California Launch

Tesla sent Robotaxi users a new terms-of-service agreement on Saturday detailing its planned launch in the Bay Area, according to a screenshot viewed by Business Insider.

The notification says rides taken outside California are “conducted autonomously.”

The update lays out a different setup for California, where Tesla is launching its Robotaxi service under tighter state oversight — a move that appears to address how the program complies with local regulations. “If your ride is taking place in California, it is being conducted with a safety driver using FSD (Supervised) pursuant to authority from the California Public Utilities Commission,” the agreement says.

Tesla did not immediately respond to a request for comment.

Tesla told staff in an internal memo Thursday that it planned to launch the Robotaxi service in San Francisco over the weekend, starting as a paid program with safety drivers in the driver’s seat, as Business Insider previously reported. The memo said drivers would be able to control the steering and brakes.

In the service agreement sent Saturday, Tesla said the service would use a variant of its supervised Full Self-Driving software. It’s unclear if it’s the same version available to subscribers.

Tesla’s FSD software can change lanes, execute turns, and recognize stop signs and traffic lights, but it requires a licensed driver to actively monitor it.

On Friday, Tesla drew regulatory scrutiny after BI reported on the internal memo.

“Tesla doesn’t have permits to deploy AVs in California & hasn’t even applied for permits,” California senator Scott Wiener wrote on X in response to Business Insider’s story. “If Tesla actually deploys its AVs without permits, these vehicles should be seized & impounded. We have permitting & safety rules for a reason. Elon isn’t exempt.”

The company has a permit from the California DMV that allows it to test its self-driving software with a licensed driver overseeing the vehicle, but the California DMV told BI on Friday that the company has yet to apply for driverless testing.

Tesla also has a permit from the California Public Utilities Commission that allows it to provide transportation services to employees and some members of the public. The agency told BI Tesla notified the CPUC on Thursday that it intended to “extend operations under its TCP permit to offer service to friends and family of employees and to select members of the public.”

Tesla’s VP of AI Ashok Elluswamy said on Wednesday’s earnings call that the company would begin its Robotaxi rollout in the Bay Area with safety drivers and is working with regulators to expand the program.

“We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he said.