A Tesla service center in Los Angeles, California, U.S., November 6, 2025.
Earlier this year, Tesla launched a robotaxi service in Austin, Texas, with a safety monitor in the front passenger seat. The company also introduced a ride-hailing service in the San Francisco Bay Area using human drivers equipped with its Full Self-Driving (FSD) software. CEO Elon Musk has said Tesla plans to operate robotaxis in eight to ten metropolitan areas by the end of the year, with the ultimate goal of removing drivers and safety monitors from the vehicles.
Under Arizona’s regulations, Tesla had previously obtained a permit in September to test and operate autonomous vehicles with a safety driver through a self-certification process. The company had also applied for authorization to test vehicles without a driver and indicated interest in launching services in the Phoenix Metro area, the Department of Transportation said in July.
Tesla submitted its TNC application for Arizona on November 13 and met the state’s requirements, receiving approval on November 17, according to the DOT statement. The company did not immediately respond to a request for comment.
The move comes as the robotaxi industry gains momentum after years of stalled development and company closures due to high costs, regulatory constraints, and federal investigations. Tesla is now competing alongside other leading autonomous-vehicle operators, including Alphabet’s Waymo and Amazon’s Zoox, both of which are accelerating their expansion in the sector.
With the Arizona permit, Tesla can now offer passenger rides in its vehicles using human drivers while continuing to test autonomous technology. The state authorization aligns with the company’s broader strategy to scale its self-driving services and prepare for a future where fully autonomous ride-hailing could be deployed.
Tesla’s progress in Arizona reflects its continued investment in autonomous systems and robotaxi services. By combining ride-hailing operations with ongoing vehicle testing, the company aims to strengthen its position in the emerging autonomous transportation market and expand the reach of its Full Self-Driving technology across multiple U.S. metropolitan areas.
The Arizona permit represents a key milestone for Tesla as it moves toward realizing Musk’s vision of a nationwide robotaxi fleet, supporting both commercial expansion and the adoption of autonomous driving technology in real-world urban environments.
