• Tesla plans to expand its robotaxi service to the San Francisco Bay Area in one to two months.
• The company is in the process of certification for autonomous vehicles in Phoenix.
• Regulatory approvals are crucial for Tesla's expansion plans, which currently include limited operations in Austin.

Tesla is set to expand its robotaxi service to the San Francisco Bay Area "probably in a month or two," contingent on receiving necessary regulatory approvals, as stated by CEO Elon Musk on social media. Musk also indicated that a larger area of Austin, Texas, would see expanded service this weekend following the initial roll-out of the robotaxi service there last month, which included significant restrictions, such as the presence of a safety monitor in the passenger seat, according to Reuters and Business Insider.

In addition to California, Tesla is seeking to launch similar services in the Phoenix metropolitan area. An Arizona Department of Transportation spokesperson mentioned that Tesla applied for certification to operate autonomous vehicles with and without safety drivers at the end of June, with a decision expected very soon, according to SCMP and Reuters.

Despite the optimistic projections from Tesla, regulatory hurdles loom large, particularly in California, where stringent testing permits are required unlike in Texas. Currently, Tesla has not applied for permits necessary for deploying driverless vehicles in California, according to state regulatory bodies, a fact that could complicate their expansion plans and influence investor sentiment, as noted by Reuters and Business Insider.

Investors are eager to see positive results from Tesla's robotaxi endeavors, which are viewed as vital to the company’s financial outlook amidst declining vehicle sales and increasing competition. Analysts have expressed that successful robotaxi expansion could threaten conventional ride-hailing services like Uber and competition from other autonomous vehicle companies such as Waymo, according to SCMP and Reuters.