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UPDATE: Elon Musk Explains Why Tesla Avoided Saying ‘Robotaxi’ During California Launch.Linh

October 15, 2025 by Linh Online Leave a Comment

Elon Musk revealed on the social media platform X last night why Tesla could not call its autonomous ride-hailing service “Robotaxi” upon its launch in California as it did in Austin, Texas.

Tesla has been operating Robotaxi ride-hailing services in the United States for less than two months, as it launched its first rides in Austin on June 22. Last month, Tesla officially launched rides in California’s Bay Area, but it only referred to it as a “ride-hailing service.”

 

Some outlets reported that it was not the “Robotaxi” fleet, but in reality, Tesla did not have the ability to use the terms “taxi” or “cab” in the state, Musk revealed on Wednesday night.

He said:

 

On the heels of announcing that Tesla was planning to expand its fleet for the service to 100 vehicles, Musk revealed that California does not allow automakers operating pilot programs of driverless services to use the terms “cab” or “taxi.”

It is a regulation enacted by the California Public Utilities Commission (CPUC), which does not allow those terms to be used for vehicles that are not fully autonomous.

The CPUC sadi in a statement:

“Tesla currently holds a transportation charter-party carrier (TCP) permit with the CPUC. Tesla does not hold and has not applied for any autonomous vehicle authorities from the CPUC. TCPs provide prearranged transportation and charter their vehicles for the exclusive use of an individual or group, as described in the Passenger Charter-party Carriers’ Act. Per statute, taxicabs are not charter-party carriers – taxis are regulated locally, not by the CPUC.”

Based on filings from other companies on the CPUC website, it appears that the terms “robotaxi” or even “robocab” are set aside for cars that are completely driverless and not under any direct supervision.

Tesla is using a Safety Monitor in its vehicles in Austin in the passenger seat. In California, this monitor is behind the steering wheel. In order for Tesla to call it a Robotaxi, it seems the in-car monitor will have to be removed altogether.

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