Tesla stock (TSLA) experienced a rise in value on Wednesday as reports indicated that the electric vehicle manufacturer was progressing towards launching a robotaxi ride-hailing service in California.
The California Public Utilities Commission (CPUC) granted approval to Tesla's application for a transportation charter-party carrier permit (TCP), potentially categorized as an "A" certificate or a "P" permit. These permits allow for chartered and point-to-point hired trips, with fees determined by mileage and/or time. The CPUC did not provide an immediate response for comment.
It is likely that Tesla's permit is similar to the one obtained by self-driving taxi competitor Waymo before adapting it for autonomous vehicle use in California. Tesla's stock prices saw a 3% increase during early trading.
At present, Tesla is permitted to offer supervised ride-hailing services in California for its employees but is not authorized to provide rides in autonomous vehicles to the general public. Operating an autonomous vehicle without a safety driver would require approval from the California Department of Motor Vehicles, for which Tesla currently only holds a permit to test autonomous vehicles with a driver present.
Much of Tesla's high valuation is linked to its robotaxi technology and service prospects. CEO Elon Musk has hinted at paid Full Self-Driving (FSD) services launching in Austin, Texas, later this year.
The company's Cybercab robotaxi, scheduled for release in 2026, is a purpose-built electric vehicle tailored for ride-hailing services. Although Tesla is using current models like the Model Y and Model 3 for autonomous testing, it is working towards deploying its specialized robotaxi. Additionally, Tesla's stock received a boost from an optimistic upgrade by Cantor Fitzgerald analyst Andres Sheppard, who believes that Tesla's efforts in autonomous ride-hailing could drive stock growth, particularly in China and Europe. Sheppard upgraded Tesla shares to Overweight and maintained a price target of $425 following a factory visit.