The cars will be driving themselves, but a Tesla employee will be in the drivers seat. As Tesla receives its remaining approvals needed, there will eventually be no one in the drivers seat.

Tesla's application was for a transportation charter-party carrier permit, a license that is typically associated with chauffeur-operated services.

What Does Tesla's TCP Permit Allow?
• In November 2024, Tesla applied for a TCP permit to operate vehicles that they own using drivers that are Tesla employees.
• According to Tesla's application, Tesla will initially utilize the TCP permit to transport Tesla employees, on a prearranged basis and in Tesla-owned vehicles.
• Tesla plans to transition to using the permit to transport members of the public on a pre-arranged basis. Tesla will notify the CPUC when it transitions to transporting members of the public.

What Does Tesla's TCP Permit Not Allow?
• Tesla has not applied for a Transportation Network Company (TNC) permit. A TNC authority is often informally referred to as "ridesharing" or "ridehailing." TNCs provide prearranged transportation services for compensation using an online-enabled application or platform (such as smart phone apps) to connect drivers using their personal vehicles with passengers (e.g., Uber, Lyft).
• Tesla's application does not seek participation in CPUC's Autonomous Vehicle (AV) Passenger Programs in either a drivered or driverless capacity, and a TCP permit alone does not authorize them to provide rides in AVs. Prior to applying to the CPUC's AV Passenger Service programs, a carrier must also possess the relevant AV authority from the California Department of Motor Vehicles; Tesla does not possess authority from the DMV to offer any driverless rides for testing or deployment purposes.

The permit mentioned in the article is a transportation charter-party carrier permit granted by the California Public Utilities Commission (CPUC) to Tesla Inc. This permit allows Tesla to begin carrying passengers in California as part of its ride-hailing operations, initially using company-owned vehicles with prearranged trips before expanding to public transport. Essentially, this permit authorizes Tesla to operate as a charter-party carrier, which includes services like limousines, shuttles, or in this case, a ride-hailing service using its electric vehicles.

However, operating a paid robotaxi service—especially one involving autonomous vehicles—requires additional permits and approvals in California.

1. Autonomous Vehicle Testing and Deployment Permits (from the California DMV)

Testing Permit with a Driver: If Tesla is still testing its autonomous driving technology with a safety driver present, it needs a permit from the California Department of Motor Vehicles (DMV) to test autonomous vehicles on public roads.