California Regulator Says Tesla’s ‘Robotaxis’ Are More Like a Limo in the Eyes of the Law
Tesla’s so-called Robotaxi service in California is being treated by regulators more like a chauffeured car service than a true autonomous cab operation like its competitors Waymo and Zoox. A top California regulator recently clarified that distinction, saying Tesla does not have the permit required to operate a real robotaxi service in the state. As a result, the company is not required to submit the same safety and driving data to regulators as its rivals. Pat Tsen, deputy executive director for consumer policy, transportation, and enforcement at the California Public Utilities Commission (CPUC), explained the situation during an interview on The Driverless Digest podcast. She said Tesla’s ride-sharing service operates under a different type of permit, one typically used for traditional car services.
“What they have from us is essentially a charter party carrier permit. It is the same type of permit that a limousine company would get from the CPUC to provide a limousine service. So, in terms of our view of the person who is sitting in the driver’s seat, that is a driver that is not a safety driver,” Tsen said. Tsen explained that the reason for this distinction is that Tesla’s AV technology is not advanced enough yet. “So in California, we define autonomous vehicles to be those that are SAE [formerly Society of Automotive Engineers] level three — meaning that the onboard AI system is capable of navigating designated road conditions within an operational design domain on its own,” she said.
Tesla’s system is considered level two, meaning it still requires a human driver to take over at any time. Waymo and Zoox, by contrast, operate at level four, meaning their vehicles can drive themselves in specific, designated areas without human intervention.
This distinction effectively puts Tesla in a regulatory blind spot. Unlike its competitors, it does not have to report detailed operational data to the CPUC, such as location data, number of passengers, vehicle miles traveled, or stoppage events when a car gets stuck for more than two minutes. Electrek reported that in November, Tesla lobbied to keep level two ride-hailing services from having to report this kind of data. Still, that hasn’t stopped Tesla from branding and naming its service as a “Robotaxi.”
Separately, another California agency has already taken issue with how the company markets its self-driving technology in consumer vehicles. After initially agreeing to a California Department of Motor Vehicles ruling that the automaker had engaged in false advertising, Tesla is now suing the DMV to reverse that decision. The company is insisting that “Autopilot” and “Full Self-Driving” are still appropriate labels for its tech. Tesla did not immediately respond to a request for comment from Gizmodo.
