Tesla stock (TSLA) surged on Wednesday following news that the electric vehicle maker had made progress towards launching robotaxi ride-hailing services in California. The California Public Utilities Commission (CPUC) approved Tesla’s application for a transportation charter-party carrier permit (TCP). Under this permit, Tesla is authorized to provide chartered and point-to-point hired trips, with charges based on mileage and/or time. Tesla’s shares rose nearly 5% on the day.
While the current permit allows Tesla to conduct supervised ride-hailing for its employees in California, it does not permit the company to offer rides in autonomous vehicles to the public. CPUC clarified that Tesla would need to apply for a transportation network company (TNC) permit to engage in activities like ridesharing or ridehailing, and would have to participate in CPUC’s Autonomous Vehicles (AV) Passenger Program to test supervised or unsupervised driverless rides. Additionally, Tesla would require safety authorization from the California Department of Motor Vehicles (DMV) to participate in the AV Passenger Program.
Tesla’s valuation heavily relies on the potential of its robotaxi product and service, with CEO Elon Musk hinting at the launch of unsupervised, paid Full Self-Driving (FSD) in Austin, Texas later this year. The company’s Cybercab, a purpose-built two-person robotaxi EV without pedals or a steering wheel, is slated for a 2026 debut. Musk’s ties to the White House through the DOGE commission are viewed as a means to facilitate regulatory approvals for future robotaxi deployments.
Cantor Fitzgerald recently upgraded Tesla’s stock to Overweight from Neutral, citing an attractive entry point for investors due to the company’s autonomous ride-hailing initiatives in Austin, potential FSD rollouts in China and Europe, and a supportive factory visit. However, headwinds such as Trump tariffs, EV tax credit reductions, and Musk’s political activities could pose challenges for Tesla in the near term.
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