Tesla has taken a significant step towards launching its robotaxi service in California, having received the first in a sequence of crucial approvals from the California Public Utilities Commission (CPUC) on Tuesday. This permit, known as the transportation charter-party carrier permit (Channel News Asia), allows the electric vehicle manufacturer to operate company-owned vehicles for pre-arranged trips, initially for its employees.

While the permit represents a milestone, it comes with restrictions. The CPUC clarified that the permit does not authorize Tesla to provide rides in its autonomous vehicles or operate a public ride-hailing service. Currently, Tesla holds a permit to test autonomous vehicles with a safety driver, and further approvals from the California Department of Motor Vehicles (DMV) and CPUC are required for a complete rollout of the autonomous taxi service. Despite this, CEO Elon Musk has expressed intentions to roll out driverless ride-hailing options in Austin as early as June and hopes to have a similar service available in California by the end of the year.

This new permit centers on Tesla’s ambitious plan to diversify revenue streams amidst slowing sales growth while competing with established firms like Uber, Lyft, and Waymo. The company has not yet submitted the applications needed to operate as a Transportation Network Company (TNC), which would allow it to perform similar functions as existing ride-hailing services.

Tesla's recent developments have also drawn public attention, with some critics voicing concerns about Musk’s management and its connection to government figures. In the aftermath of the permit approval, the company’s share price showed signs of recovery, suggesting investor support for its future initiatives.

For further details, visit the full article from Reuters.