Tesla receives ride-hailing permit in Arizona in last required step to launch robotaxi service

Tesla has received a ride-hailing permit from Arizona regulators this week, clearing the final regulatory hurdle for the automaker to begin operating a robotaxi service in the state.

A spokesperson for the Arizona Department of Transportation (ADOT) told TechCrunch that Tesla applied for a Transportation Network Company (TNC) permit on November 13. Tesla met all required criteria and has been officially permitted since November 17, ADOT confirmed.

The permit marks the last primary approval Tesla needed to launch a robotaxi service in Arizona — a state that has become a significant testing ground for autonomous vehicles. Waymo, Alphabet’s self-driving subsidiary and the current leader in U.S. robotaxi operations, has been running a commercial service in the Phoenix area since 2018. Today, Waymo’s vehicles cover a service region of 315 square miles across the greater metro area.

Under Arizona law, companies can self-certify to test autonomous vehicles, whether with or without a safety driver. However, self-certification does not allow a company to operate a commercial robotaxi service. Any company that wants to charge for rides — whether with human drivers or autonomous vehicles — must secure a Transportation Network Company permit.

Back in June, Tesla contacted ADOT to begin the certification process for autonomous ride-sharing and expressed interest in operating in the Phoenix metro area. According to ADOT, the automaker later applied for certifications to test and operate autonomous vehicles both with and without a driver. Tesla completed the state’s self-certification process for autonomous vehicle testing in September.

Arizona is one of several states Tesla CEO Elon Musk has identified as a priority market for the planned robotaxi network.

In June, Tesla launched a limited robotaxi pilot in South Austin, though the service still includes a human safety operator seated in the passenger seat. The company has also deployed a similar ride-hailing-style program in California, though it lacks the required permits to operate a paid commercial robotaxi service. Instead, Tesla — which holds a charter-carrier permit — currently uses employees driving Tesla Model Y vehicles equipped with its Full Self-Driving Supervised system to transport riders.