Tesla's robotaxi expansion hits reality check: HUMAN DRIVERS still needed behind the wheel

By avagrace // 2025-07-29

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Tesla is expanding its robotaxi service to San Francisco after a problematic debut in Austin, but human drivers are still required – revealing the technology isn't fully autonomous despite Elon Musk's promises.
The Austin trial showed Tesla's Full Self-Driving (FSD) software struggling with basic tasks, including running stop signs and unsafe drop-offs. The service remains limited to select users, daylight hours and low-speed roads.
Unlike Waymo, Tesla lacks permits for true autonomous operation in California. Its service will operate under a restricted taxi license, allowing only human-driven rides for employees and select users – contradicting Musk's claims of regulatory progress.
Tesla's push into robotaxis comes amid declining revenues and legal scrutiny over misleading "Full Self-Driving" marketing. California's DMV may revoke Tesla's license to sell cars if found guilty of deceptive advertising.
Waymo has already launched fully driverless services after years of testing, while Tesla's aggressive, less-regulated approach faces regulatory pushback – highlighting its lag behind competitors in the autonomous vehicle race.

Tesla is pushing forward with its much-hyped robotaxi service, but reality is proving far messier than CEO Elon Musk's bold promises. The electric vehicle (EV) giant is preparing to expand its so-called autonomous ride-hailing program to San Francisco after a troubled debut in Austin, Texas. Despite Musk declaring that full self-driving cars were just around the corner, Tesla's latest rollout will still require human drivers behind the wheel. The company claims this is a temporary measure while awaiting regulatory approval, but critics argue it exposes deeper flaws in Tesla's self-driving ambitions. Regulators in California have made it clear that Tesla lacks the necessary permits for true autonomous operation. Given this, the so-called "robotaxi" service will function more like a traditional chauffeur service. It ultimately raises serious questions about whether Tesla can ever deliver on Musk's futuristic vision. (Related: Tesla moves a step closer toward its goal of operating a fleet of autonomous robotaxis in California.) Tesla's initial robotaxi trial in Austin has been plagued with problems. Reports indicate that the vehicles – Model Y SUVs equipped with Tesla's Full Self-Driving (FSD) software – have struggled with basic driving tasks. Some have run stop signs, swerved into wrong lanes and even dropped passengers in unsafe locations. Despite these issues, Tesla is pressing ahead, using human safety operators to monitor the system. But even this setup has limitations. The service is only available to select users under Tesla's "early access program," operates in daylight and good weather and is restricted to roads with speed limits under 40 miles per hour.

California regulators: "No-go" for Tesla robotaxi

California regulators have made it clear that Tesla is not authorized to operate a true robotaxi service. Unlike competitors like Waymo, Tesla has not obtained the necessary approvals from the California Public Utilities Commission (CPUC) or the California Department of Motor Vehicles (DMV). A CPUC spokesperson confirmed that Tesla's Bay Area service will be limited to human-driven vehicles under a "charter-party carrier" permit – essentially a glorified taxi license. The company can only transport "friends and family of employees" and "select members of the public," with no autonomous functionality permitted. This stands in stark contrast to Musk's recent earnings call claims that Tesla was "getting regulatory permission" for robotaxis. Tesla's push into robotaxis comes at a critical moment. The company is grappling with declining revenues, shrinking profit margins, and increasing competition in the EV market. Musk has long positioned autonomous driving as Tesla's next big revenue stream, but repeated delays and regulatory setbacks have left investors skeptical. Meanwhile, Tesla faces legal scrutiny over its marketing of "Full Self-Driving" technology. The DMV has accused the company of misleading consumers, arguing that Tesla's promotional materials imply capabilities the system does not actually possess. A hearing is currently underway that could result in Tesla losing its license to sell cars in the state. While Tesla struggles to get off the ground, Alphabet's Waymo has already established a fully driverless ride-hailing service in San Francisco and Los Angeles. The company spent nine years securing permits, conducting extensive testing and proving its technology before receiving approval to charge passengers. Tesla's robotaxi ambitions are colliding with hard truths: The technology isn't ready, regulators aren't convinced and competitors are already ahead. The company's latest expansion – requiring human drivers in what was supposed to be a driverless service – highlights the gap between Musk's rhetoric and reality. Watch CNBC's Jim Cramer revealing that the market was unimpressed with Tesla's long anticipated robotaxi event. This video is from the TrendingNews channel on Brighteon.com.

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California regulators: "No-go" for Tesla robotaxi

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