Tesla gets approval for ride-hailing business in California

The California Public Utilities Commission (CPUC) granted Tesla's application for a ride-hail permit, a required first step in the automaker's quest to launch a robotaxi service in the state.

Last year, Tesla applied to become a transportation charter-party carrier (TCP), which enables it to operate a fleet of vehicles for passenger services using employees as drivers. CPUC is a state agency that regulates human- and robot-driven vehicles for ride-hail services.

With its new permit, Tesla can transport its own employees as passengers in Tesla vehicles on a pre-arranged basis, according to CPUC. It can then transition to using the permit to transport members of the public, but will need to notify the agency first before initiating that step.

TCP permits are different from the permits for ridehailing companies like Uber and Lyft, which operate as transportation network companies that connect independent drivers to customers via mobile apps.

Also, its important to note that Tesla is not yet participating in CPUC's autonomous vehicle passenger program - though it will need to do so if it intends to launch a commercial passenger service using driverless cars. The company would also need to obtain permission from the California Department of Motor Vehicles to test fully driverless vehicles - which it has yet to do.

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