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Tesla hit with major setback in effort to expand robotaxi service: 'Introduces a dangerous element to the city'

Elon Musk did not mention it during recent remarks.

Elon Musk did not mention it during recent remarks.

Photo Credit: Depositphotos.com

Tesla's plans to launch its autonomous Robotaxi service in the San Francisco Bay Area hit a snag after the company failed to secure the proper permits to operate self-driving rides. 

What's happening?

On July 25, Business Insider reported that Tesla was moving up the launch of its Robotaxis in San Francisco. However, the company seemed to lack the necessary permits to operate a commercial car service using autonomous vehicles, or AVs.

The California Public Utilities Commission told local outlet ABC7 that Tesla hadn't applied for all the necessary permits for a commercial AV service. The company does, however, have a permit that allows it to operate charter services using traditional cars with human drivers.

Tesla launched ride-hailing services in San Francisco on July 31. Customers there can call up a Tesla — with a driver behind the wheel — according to The Verge.

Chief executive officer Elon Musk did not mention Robotaxis when sharing the launch of the company's new service. "You can now ride-hail a Tesla in the SF Bay Area, in addition to Austin," he posted on X. 

Why is this notable?

California has a rigorous process for approving passenger services involving self-driving vehicles. Tesla's failure to secure the proper permits could raise concerns about the safety and reliability of its Robotaxi services, potentially weakening consumer confidence.

The Robotaxi program currently operating in Austin, Texas, has already received criticism. There have been several instances of these autonomous cars stalling and stopping in the middle of the street. The vehicles also require human safety monitors to sit in the passenger seat.

Plus, while electric vehicles are a major environmental improvement over gas-powered cars, some residents believe it would be better to have fewer cars on the streets altogether. Investing in upgrades to a robust, climate-smart public transportation system could save people thousands of dollars on gas and maintenance costs while reducing air pollution.

Streets Forward, an advocacy group pushing for safer streets and fewer cars in San Francisco, expressed concerns over Tesla introducing a new service in the city.

"This introduces a dangerous element to the city and to the state and also would likely increase car traffic and the number of people taking car trips around the city," Luke Bornheimer, executive director at Streets Forward, told ABC7.

What's being done about this?

Tesla is reportedly aiming to get the proper permissions to launch Robotaxis in earnest by the end of the year, according to Politico. However, there is no indication yet that the company has filed for the necessary permits in California.

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Tesla also continues to refine its self-driving technology. The company recently announced a major update to its Full Self-Driving mode for Robotaxi and consumer vehicles. This should improve memory management and caching for better reaction times.

Meanwhile, prospective buyers looking for another EV option altogether have a growing range of alternatives to the well-known automaker. While Tesla continues to make news, a variety of brands are on the market to meet more drivers' needs.

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