Tesla Clears Key Regulatory Step in Arizona as Robotaxi Ambitions Accelerate

Tesla has secured a transportation network company permit from Arizona’s Department of Transportation, giving it initial clearance to offer ride-hailing services in the state. While further permits are still required, the move supports Tesla’s broader plan to roll out robotaxi operations in Phoenix and other cities by 2026.

The approval follows Tesla’s recent push into autonomous testing. The company applied in July to run both supervised and driverless trials in Phoenix and has been running a robotaxi pilot in Austin with safety operators on board. Tesla also continues to offer a standard car service in the Bay Area.

Safety remains a central concern. Federal data shows seven reported crashes involving Tesla vehicles using automated driving features since the Texas pilot began. Tesla, meanwhile, aims to remove human safety drivers in Austin before the end of the year.

Competitors maintain a strong lead. Waymo operates a large driverless fleet of roughly 400 vehicles in Phoenix and has completed over 10 million driverless rides in the U.S. In China, Baidu’s Apollo Go delivered 3.1 million fully autonomous rides in the third quarter of 2025, more than double last year.

Even so, CEO Elon Musk continues to signal confidence, saying Tesla is close to reaching a level of autonomy that would allow drivers to relax or even sleep. For now, the Arizona permit marks steady, incremental progress as the company works toward true commercial deployment.