Sonali Tiwary
Sunita Somvanshi
Tesla has received approval from Arizona to test its autonomous robotaxis with safety monitors on board. The Arizona Department of Transportation confirmed this decision on Friday after Tesla applied for the permit back in June.
The electric vehicle maker plans to test these self-driving cars in the Phoenix metro area. Each vehicle will have a trained safety driver present during testing. This approval makes Arizona the third state where Tesla can test its robotaxi program, following earlier approvals in Texas and Nevada.
“Tesla plans to launch an autonomous ride-hailing service to about half of the U.S. population by the end of this year,” CEO Elon Musk previously stated, though the company has not revealed when the Arizona tests will begin or how long they will last.
The Arizona approval is only for testing. If Tesla wants to offer paid rides to the public, it still needs to get a transportation network company (TNC) license – the same type that Uber and Lyft need to operate in the state.
Tesla first launched its robotaxi testing in Austin, Texas in June with about a dozen vehicles. This small-scale program operates with significant restrictions, including a select group of passengers and safety monitors. In Austin, safety monitors typically sit in the passenger seat during city driving but move to the driver’s seat on highways.
The rules vary by state. In California’s Bay Area, where Tesla also has permission to test, safety monitors must always sit in the driver’s seat.
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Waymo, owned by Google parent Alphabet, already offers fully driverless ride services in Phoenix, operating without safety drivers since 2020. This puts Tesla behind in the race to deploy commercial robotaxi services in Arizona.
While Tesla’s cars aren’t yet fully autonomous, the company continues expanding its testing footprint. The recent approval follows Nevada’s authorization earlier this month and reports of testing in Miami, where vehicles were spotted without even safety monitors inside.
Tesla also seems to be targeting airports. According to reports, the company has approached several California airports requesting approval for passenger pickups and drop-offs. Last week, Waymo became the first company authorized to operate commercially at San José Airport.
The electric vehicle maker’s stock has rebounded significantly this year. After hitting a low of $221.86 in April, shares closed at $426 on Friday, marking an 85% gain. This recovery was boosted by news that Elon Musk, through his family foundation, purchased $1 billion worth of Tesla shares.
Despite this recent stock performance, Tesla faces challenges with sales as its vehicles age and competition increases, particularly from Chinese manufacturer BYD offering cheaper electric vehicles.
