Tesla is preparing to test its first version of a robotaxi on the streets of San Francisco this weekend. According to Business Insider, it will be a limited launch with a human driver onboard. The reason is simple: Tesla currently lacks the necessary permits to operate fully autonomous vehicles in California.

This trial follows the recent pilot program that began last month in Austin, Texas. Although Elon Musk has long promised a revolution in autonomous transportation, the reality is still far from a truly driverless robotaxi.

No Permit, No Full Autonomy

Documents obtained by Business Insider from the California Department of Motor Vehicles confirm that Tesla is not authorized to run vehicles without drivers. Every ride in San Francisco this weekend will therefore have a human operator behind the wheel, ready to take control if needed.

It’s also unclear whether Tesla has approval from the California Public Utilities Commission to transport paying passengers. For now, the service is only allowed for Tesla employees.

Invitations for Model Y Owners

Tesla plans to send invitations to select Model Y owners, offering them a chance to try the robotaxi service. During a Wednesday investor call, CEO Elon Musk said the company is actively working to secure all necessary approvals in California.

This comes amid regulatory tension in the state. California officials are reportedly considering banning the sale of Tesla vehicles due to the company’s allegedly misleading claims about its autonomous driving capabilities. Tesla is also facing a separate lawsuit over fatal crashes involving its Autopilot driver-assistance system.

Trials in Austin and Planned Expansion

Since June 22, Tesla has been running a limited robotaxi program in Austin, Texas. The fleet initially consisted of around 10 Model Y vehicles, though the exact number remains undisclosed. The cars operate mainly in downtown areas and along major roads. A safety operator sits in the front passenger seat and can take over if the vehicle's automated system behaves dangerously.

It’s unknown how frequently these operators have had to intervene. What’s clear is that the program still falls short of Musk’s promised “generalized solution” — an AI system capable of driving from Los Angeles to New York without human help. That bold claim, made in 2019, has yet to materialize.

Musk also revealed plans to expand testing into Arizona and Florida. According to TechCrunch, Tesla has already started the certification process in Arizona for both driverless and supervised testing.

Delays in Optimus Robot Production

While Tesla pushes forward with its robotaxi vision, another of its ambitious projects is falling behind schedule. According to The Information, Tesla’s production of its humanoid robot, Optimus, is significantly delayed. The company originally aimed to build 5,000 units by the end of 2025. So far, only a few hundred have been made.

Unless Tesla ramps up production significantly, it may have to postpone that goal. During its Q2 earnings call, Musk said Tesla plans to begin production of a new model, Optimus 3, in early 2026.

“Our goal is to scale production as fast as possible and reach a million units per year,” Musk stated. “We believe we can get there in under five years.”

Earnings Under Pressure

News of the robotaxi launch comes as Tesla struggles with falling revenues. In Q2 2025, the company reported a 12% year-over-year decline. The drop was attributed to weaker EV sales, lower regulatory credit revenue, and a slowdown in its energy storage and solar business.

Despite holding a technological edge in electric mobility, Tesla’s boldest visions — whether self-driving taxis or humanoid robots — remain more of a promise than a reality.

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