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On Fri, 28 Feb, 4:04 PM UTC
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[1]
Tesla sets sights on Waymo, Uber in California ride-hail bid
Tesla Inc. is seeking approval to offer ride-hailing services in California, a key step by Elon Musk's company to begin carrying paying customers while its traditional car-selling business falters. The electric vehicle manufacturer applied late last year for what's known as a transportation charter-party carrier permit from the California Public Utilities Commission, according to documents viewed by Bloomberg. That classification means Tesla would own and control the fleet of vehicles. The previously unreported application suggests Tesla is working to launch a promised ride-hailing business in the near term, opening a new revenue stream and putting it in competition with the likes of Uber Technologies Inc., Lyft Inc. and Waymo. Musk has said Tesla would roll out driverless ride-hailing in Austin in June and aimed to offer it in California by the end of the year, without offering specific details. Shares of Uber briefly turned negative on the news and were trading up less than 1% as of 12:57 p.m. in New York. Lyft also pared gains. Tesla was little changed. Musk has made a big bet on autonomous driving, robotics and artificial intelligence as the primary business of selling EVs struggles. Tesla recently posted its first annual sales decline in over a decade, and the first quarter shows signs of sluggishness in key markets such as the US and Europe. In its communications with California officials, Tesla discussed driver's license information and drug-testing coordination, suggesting the company intends to use human drivers, at least initially. Tesla is applying for the same type of permit used by Waymo, Alphabet Inc.'s robotaxi business. While Tesla has approval to test autonomous vehicles with a safety driver in California, it doesn't have, nor has applied for, a driverless testing or deployment permit from the state's Department of Motor Vehicles, according to a spokesperson. It wasn't immediately clear whether Tesla would obtain the California Public Utilities Commission permit or when the service might start. A spokesperson said in an emailed statement that Tesla's application "is pending and not yet public." Casey Blaine, Tesla's senior regulatory counsel, didn't respond to requests from Bloomberg for comment. Several other Tesla employees who are involved in the effort also didn't respond to inquiries. Different business models A ride-hailing business with human drivers could pave the way for Tesla to introduce robotaxi service in California, where Waymo already operates a driverless fleet in San Francisco. There are different permitting requirements and operating rules for each business model -- Uber and Lyft allow drivers to use their personal vehicles, unlike Waymo -- and the state's stricter demands on autonomous vehicles have tripped up some companies. Cruise had its license suspended in California after an incident that injured a pedestrian, and parent General Motors Co. later folded the operations while abandoning the robotaxi market. Musk has talked for years about operating a Tesla fleet without human drivers. Tesla does not currently have a fully autonomous vehicle on the market, but it offers driver-assistance systems that control some functions while an alert human remains behind the wheel. Tesla unveiled a prototype in October of its forthcoming driverless Cybercab. Musk has said the company will roll out its ride-hailing service initially using existing vehicle models, which would include the Model 3 sedan and the Model Y SUV. Musk recently addressed ride-hailing preparations, saying that there was "a bunch of work that needs to be done to make sure the whole thing works efficiently," including ensuring that the payment system and app functionality operate as intended. Tesla's path to launching robotaxi service is clearer in Texas, where autonomous driving is regulated much like any other vehicle. Its vehicles will be required to have cameras and be able to follow traffic laws and have insurance. The company will also need a ride-share license with the Texas Department of Licensing and Regulation. As of early February, the company had not had communication with the department, according to a records request. Tesla is also not currently listed as a ride-share licensee on the department's website. Uber is preparing to launch autonomous rides with Waymo in Austin and Atlanta this year. Uber Chief Executive Officer Dara Khosrowshahi said this month that he had had conversations with Musk, but that the Tesla CEO decided not to put its vehicles on Uber's platform.
[2]
Tesla sets sights on Waymo, Uber in California ride-hail bid
Tesla Inc. is seeking approval to offer ride-hailing services in California, a key step by Elon Musk's company to begin carrying paying customers while its traditional car-selling business falters. The electric vehicle manufacturer applied late last year for what's known as a transportation charter-party carrier permit from the California Public Utilities Commission, according to documents viewed by Bloomberg. That classification means Tesla would own and control the fleet of vehicles. The previously unreported application suggests Tesla is working to launch a promised ride-hailing business in the near term, opening a new revenue stream and putting it in competition with the likes of Uber Technologies Inc., Lyft Inc. and Waymo. Musk has said Tesla would roll out driverless ride-hailing in Austin in June and aimed to offer it in California by the end of the year, without offering specific details. Musk has made a big bet on autonomous driving, robotics and artificial intelligence as the primary business of selling EVs struggles. Tesla recently posted its first annual sales decline in over a decade, and the first quarter shows signs of sluggishness in key markets such as the U.S. and Europe. In its communications with California officials, Tesla discussed driver's license information and drug-testing coordination, suggesting the company intends to use human drivers, at least initially. Tesla is applying for the same type of permit used by Waymo, Alphabet Inc.'s robotaxi business. While Tesla has approval to test autonomous vehicles with a safety driver in California, it doesn't have, nor has applied for, a driverless testing or deployment permit from the state's Department of Motor Vehicles, according to a spokesperson. It wasn't immediately clear whether Tesla would obtain the California Public Utilities Commission permit or when the service might start. A spokesperson said in an emailed statement that Tesla's application "is pending and not yet public." Casey Blaine, Tesla's senior regulatory counsel, didn't respond to requests from Bloomberg for comment. Several other Tesla employees who are involved in the effort also didn't respond to inquiries. Different business models A ride-hailing business with human drivers could pave the way for Tesla to introduce robotaxi service in California, where Waymo already operates a driverless fleet in San Francisco. There are different permitting requirements and operating rules for each business model - Uber and Lyft allow drivers to use their personal vehicles, unlike Waymo - and the state's stricter demands on autonomous vehicles have tripped up some companies. Cruise had its license suspended in California after an incident that injured a pedestrian, and parent General Motors Co. later folded the operations while abandoning the robotaxi market. Musk has talked for years about operating a Tesla fleet without human drivers. Tesla does not currently have a fully autonomous vehicle on the market, but it offers driver-assistance systems that control some functions while an alert human remains behind the wheel. Tesla unveiled a prototype in October of its forthcoming driverless Cybercab. Musk has said the company will roll out its ride-hailing service initially using existing vehicle models, which would include the Model 3 sedan and the Model Y SUV. Musk recently addressed ride-hailing preparations, saying that there was "a bunch of work that needs to be done to make sure the whole thing works efficiently," including ensuring that the payment system and app functionality operate as intended. Tesla's path to launching robotaxi service is clearer in Texas, where autonomous driving is regulated much like any other vehicle. Its vehicles will be required to have cameras and be able to follow traffic laws and have insurance. The company will also need a ride-share license with the Texas Department of Licensing and Regulation. As of early February, the company had not had communication with the department, according to a records request. Tesla is also not currently listed as a ride-share licensee on the department's website. Uber is preparing to launch autonomous rides with Waymo in Austin and Atlanta this year. Uber Chief Executive Officer Dara Khosrowshahi said this month that he had had conversations with Musk, but that the Tesla CEO decided not to put its vehicles on Uber's platform. (With assistance from Kara Carlson and Natalie Lung.)
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Tesla applies for a ride-hailing permit in California, signaling its entry into the competitive market dominated by Uber and Lyft. The move is seen as a stepping stone towards Elon Musk's vision of a fully autonomous robotaxi service.
Tesla Inc., the electric vehicle giant led by Elon Musk, is making a significant pivot in its business strategy. The company has applied for a transportation charter-party carrier permit from the California Public Utilities Commission, signaling its intention to enter the ride-hailing market 12. This move comes at a crucial time for Tesla, as its traditional car-selling business faces challenges, including its first annual sales decline in over a decade.
The permit application, filed late last year, would allow Tesla to own and control a fleet of vehicles for ride-hailing purposes. This puts the company on a direct collision course with established players like Uber, Lyft, and Waymo 1. The application suggests that Tesla is preparing to launch its long-promised ride-hailing service in the near future, potentially opening up a new revenue stream for the company.
Interestingly, Tesla's communications with California officials have included discussions about driver's license information and drug-testing coordination. This indicates that the company plans to start its service with human drivers, at least initially 12. However, this approach is seen as a stepping stone towards Musk's ultimate vision of a fully autonomous robotaxi service.
Tesla's move into the ride-hailing space comes with its own set of regulatory challenges. While the company has approval to test autonomous vehicles with safety drivers in California, it has not yet applied for a driverless testing or deployment permit from the state's Department of Motor Vehicles 1. The regulatory landscape for autonomous vehicles in California is notably stricter than in other states, as evidenced by the recent suspension of Cruise's license following a pedestrian injury incident 2.
Elon Musk has long talked about operating a Tesla fleet without human drivers. While the company doesn't currently have a fully autonomous vehicle on the market, it does offer driver-assistance systems that control some functions with human oversight 2. Tesla unveiled a prototype of its driverless Cybercab in October, but Musk has stated that the initial roll-out of the ride-hailing service will use existing vehicle models like the Model 3 sedan and Model Y SUV 12.
The news of Tesla's potential entry into the ride-hailing market has already had an impact on its would-be competitors. Shares of Uber briefly turned negative following the announcement, while Lyft also saw its gains pared 1. Meanwhile, Uber is preparing to launch autonomous rides in partnership with Waymo in Austin and Atlanta this year, further intensifying the competition in this space 12.
As Tesla navigates the complex regulatory environment in California, its path to launching a robotaxi service appears clearer in Texas, where autonomous driving regulations are less stringent 12. However, the company still needs to address various operational challenges, including payment systems and app functionality, before it can fully realize its ride-hailing ambitions 2.
Tesla's move into the ride-hailing market represents a significant shift in its business strategy, one that could potentially reshape the competitive landscape of the industry while advancing the cause of autonomous driving technology.
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Tesla CEO Elon Musk announces plans to launch driverless robotaxis in California and Texas by 2025, facing regulatory hurdles and technical challenges.
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Tesla's Q2 earnings report reveals challenges in the EV market, with Elon Musk addressing concerns about Full Self-Driving, robotaxis, and critical materials. The company's future strategy focuses on cost reduction and diversification.
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Uber announces new initiatives to electrify its fleet, while analysts debate the impact of Tesla's upcoming Robotaxi Day on the ride-hailing industry.
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Tesla CEO Elon Musk is set to unveil plans for the company's much-anticipated robotaxi, dubbed 'Cybercab', at Warner Bros Hollywood studio. The event has reignited investor interest despite cooling EV market expectations, but analysts remain cautious about immediate deliverables.
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Elon Musk's close ties with President-elect Donald Trump could potentially ease regulatory hurdles for Tesla's autonomous vehicle ambitions, but significant technological and legal challenges remain.
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