Tesla Robotaxi Dreams Stall in California

Tesla logged zero autonomous test miles on California roads in 2025, the sixth consecutive year without documented progress for its driverless robotaxi ambitions. State records indicate Tesla made no effort to obtain necessary approvals for autonomous ride-hailing services, despite CEO Elon Musk's repeated assertions that the company is months away from launching such a service. This lack of testing and regulatory pursuit challenges the market's valuation of Tesla, which is heavily influenced by expectations of a large fleet of autonomous vehicles.

California's regulatory framework requires companies to progress through multiple permit stages before operating driverless ride-hailing, a process Tesla has not actively engaged with. While Tesla holds an entry-level permit for testing with a safety driver, it has not applied for permits allowing driverless operation. Experts suggest regulators are ready, but Tesla is not, contrary to Musk's framing of regulations as the primary impediment.

Waymo, a competitor, has logged over 13 million testing miles and secured multiple regulatory approvals, including the ability to charge passengers for driverless rides. Tesla, meanwhile, has logged minimal autonomous miles in California since 2016 and previously criticized the state's proposed autonomous driving rules, citing reporting burdens and testing requirements.