Tesla’s Robotaxi Hits San Francisco—But It’s Not Driving Alone Yet

Tesla is gearing up to bring its robotaxi project to San Francisco, but the rollout is far from fully autonomous or widely available. Internally, the company has told employees it’s planning a soft launch for a chartered ride service that uses existing Model Y vehicles equipped with its Full Self-Driving (FSD) system. The twist? There will still be a human driver in the car — not behind the wheel, but sitting in the passenger seat, monitoring the system. Tesla has already tested this setup in Austin, Texas, and now wants to try it in the Bay Area. However, California regulators haven’t granted Tesla permission for autonomous ride-hailing. The company hasn’t even applied for a driverless deployment permit, and the CPUC has only authorized them for a very limited charter model. For now, rides will be limited to Tesla employees, their guests, and a few invite-only users. That hasn’t stopped the company from labeling it a “robotaxi” — a term that regulators and critics argue is misleading at this stage. With past issues in Austin and tough competition from Waymo and Cruise, Tesla’s challenge isn’t just technical — it’s legal, reputational, and strategic. The cars might be ready, but the city and regulators may not be.