Tesla has gotten a permit to operate a ride-hailing service in Arizona, marking a big step in the company's push toward getting more EVs on the road.
The Arizona Department of Transportation confirmed that Tesla applied for its "transportation network company" permit on Nov. 13 and received approval days later. This opens the door for autonomous Tesla service in Phoenix, one of the country's most competitive and largest testing grounds for driverless vehicles.
CNBC reported that Tesla will still need additional permits before launching fully autonomous ride-hailing. The company is already running a pilot program in Austin, Texas, and applied this summer to conduct autonomous testing in Phoenix with and without human safety drivers on board. CEO Elon Musk has said the company plans to remove safety drivers in Austin by the end of this year and begin commercial operations in multiple U.S. cities by next year.
The expansion arrives at a complicated moment for Tesla. While the company is a dominant force in the EV industry, its sales numbers have struggled. With demand for autonomous services on the rise and competitors like Waymo already deeply entrenched in the Phoenix area, the move is a smart strategy.
Tesla's service would bring more competition to the market and increase the number of electric vehicles on the road. That's overall good news for residents — EVs don't emit tailpipe pollution, so local air quality and public health will improve with more clean transportation options.
Still, the stakes are high. According to CNBC, Musk told shareholders this month that the "killer app" for autonomy is reaching the point where people can "text and drive" or even "sleep and drive," but noted that "before we allow the car to be driven without paying attention, we need to make sure it's very safe." However, Musk said the company is "on the cusp" of reaching that goal.
The National Highway Traffic Safety Administration listed seven reported collisions involving Tesla's automated systems in Texas since the pilot began, which explains why regulators continue to scrutinize the rollout.
Public reactions suggest people are still hesitant about Tesla Robotaxis, given safety concerns. One Reddit user wrote, "Tesla and their solely-vision based system are less safe than Waymo." Another added: "There is zero chance I would ever use a Tesla auto taxi."
On the other hand, some were happy to see more diversity in the market. "I personally can't stand Elon, but … this is a good thing if you support autonomous driving," one person wrote. "Competition drives innovation up and cost down." One commenter added: "Hail to LIDAR and Waymo, but I do like competition."
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