Tesla has received approval from the California Public Utilities Commission (CPUC) to operate a transportation service in the state, though the permit does not yet extend to autonomous vehicle operations. The transportation charter permit (TCP), granted on Tuesday, allows Tesla to use its own vehicles and employees as drivers for prearranged transport services. Initially, the company plans to use this permit for employee transportation, with the possibility of expanding to public services in the future.

Unlike Uber and Lyft, which operate under transportation network company (TNC) permits, Tesla's TCP authorisation requires the company to own the vehicles and directly employ its drivers. The permit does not allow Tesla to test or deploy autonomous vehicles, nor does it grant the company participation in California's Autonomous Vehicle Passenger Service Programs. Should Tesla wish to operate a driverless service, it would need additional approvals from both the CPUC and the California Department of Motor Vehicles (DMV).

Despite these restrictions, Tesla continues to push forward with its self-driving ambitions. CEO Elon Musk has announced plans to launch a robotaxi service in Austin, Texas, as early as June, using vehicles equipped with an updated version of the company's Full Self-Driving software. While California regulators have not yet approved Tesla's autonomous ride-hailing plans, the newly acquired permit may represent the first step towards that goal.