Tesla, under Elon Musk, is moving to expand its robotaxi service from Texas into Arizona and California. The company has asked Arizona’s Department of Transportation for permission to run self-driving taxis in Phoenix, both with and without safety drivers.
Officials expect to decide on Tesla’s application by the end of July. This follows Tesla’s recent pilot in Austin, Texas, where a small number of Model Y robotaxis began offering rides in June 2025.
Each ride includes a trained supervisor in the front seat. Tesla wants to grow the Austin fleet to about 1,000 vehicles and later introduce a new, fully driverless car called the Cybercab.
In California, Tesla has started the process to get the permits needed for commercial robotaxi service, focusing first on the San Francisco Bay Area. However, the company still needs more approvals before it can operate fully driverless cars there.
Tesla’s technology uses cameras instead of the more expensive sensors used by competitors like Waymo, which already runs a large driverless taxi service in Phoenix.
Waymo’s service covers 315 square miles and even allows teenagers to ride with parental consent. Tesla’s Austin pilot has faced problems, including incidents where robotaxis hit parked cars or broke traffic rules.
U.S. safety regulators are now reviewing these cases to check if the technology is safe. Tesla is betting on robotaxis and artificial intelligence to drive its future growth as its traditional car business slows.
The company’s push into Arizona and California could shake up the ride-hailing industry, but it still faces tough regulatory and technical challenges before its driverless taxis become a common sight.