Tesla Secures Texas Approval To Operate A Statewide Robotaxi

Tesla has secured a major regulatory green light in Texas, obtaining a permit to operate a statewide ride-hailing service through its subsidiary, Tesla Robotaxi LLC.

The license, granted by the Texas Department of Licensing and Regulation (TDLR), is valid until August 6, 2026, and allows the company to function as a “transportation network company” anywhere in the state. Uniquely, this classification also covers “automated motor vehicles,” meaning Tesla is not required to have a human safety driver or valet in its vehicles during operations.

The development comes after Tesla’s quiet rollout of a limited pilot robotaxi service in Austin in late June, where the company invited a select group of passengers—many of them social media influencers and Tesla analysts—to experience rides in its Model Y fleet equipped with its latest partially automated driving technology. These vehicles have so far been operated with a valet or human safety supervisor in the front passenger seat, tasked with intervening when necessary, and monitored remotely by Tesla staff at an operations center.

While CEO Elon Musk, who has famously described himself as “pathologically optimistic,” believes Tesla can serve half the U.S. population with autonomous ride-hailing services by the end of 2025, the road to that vision is far from smooth. Tesla’s autonomous vehicle (AV) program has long been under intense scrutiny. The company has faced federal probes, lawsuits, and recalls related to incidents involving its Autopilot and Full Self-Driving (FSD) systems, which regulators say still require active human oversight despite Musk’s repeated promises of full autonomy.

The Texas permit marks a turning point, as the state has historically been more permissive toward AV testing compared to jurisdictions like California, where Tesla has faced harsher pushback. A new Texas law signed by Governor Greg Abbott will soon require AV makers to obtain state approval before launching driverless services, with the Texas DMV empowered to revoke permits for safety violations.

For now, the green light positions Tesla to expand without some of the regulatory roadblocks seen elsewhere.

However, the company’s pilot in Austin was greeted with controversy. Videos and eyewitness accounts have documented Tesla robotaxis running traffic lights, failing to stop at train crossings, and making risky maneuvers. In one case, Tesla content creator Joe Tegtmeyer reported that his robotaxi ignored a train crossing signal and lowered gate arm, forcing a Tesla employee on board to intervene. The National Highway Traffic Safety Administration has since confirmed discussions with Tesla about the incident.

Also, Tesla’s AV push has been plagued by a history of unmet deadlines. Since 2016, Musk has claimed Tesla could make all its EVs fully autonomous via a software update. In 2019, he pledged one million robotaxis by 2020—a projection that helped secure $2 billion in investor funding at the time. Yet, competitors like Alphabet’s Waymo in the U.S. and Baidu’s Apollo Go in China remain far ahead in fully driverless ride-hailing operations.

Now, with Tesla shares down 18% this year—making them the worst performer among tech’s megacap stocks—analysts see the Texas permit as both a bold expansion opportunity and a high-stakes gamble. Given Tesla’s safety record, mounting legal challenges, and the gap between Musk’s promises and delivery, some industry analysts believe the company will face significant pressure to prove it can operate robotaxis at scale without repeating past missteps.

If Tesla succeeds, the Texas approval could be a springboard for broader adoption of its robotaxi vision across the U.S. If it fails, it will add to the growing list of ambitious Musk timelines that never materialized.