Tesla has achieved another regulatory milestone in its autonomous vehicle ambitions. The company received approval from Arizona’s Department of Transportation to operate as a Transportation Network Company (TNC), clearing the way for the electric automaker to launch its robotaxi service in the state.
Arizona Approval: The Details
Tesla applied for the Arizona TNC authorization on November 13 and received the permit on November 17, according to the state’s Department of Transportation. This permit allows Tesla to operate an Uber-like ride-hailing service and charge passengers for rides—a crucial step that distinguishes the company from its testing phases in other states.
However, there’s an important caveat: the permit does not let Tesla operate fully driverless vehicles. Every Tesla vehicle in the fleet will still require a safety driver behind the wheel who can use the Full Self-Driving (Supervised) system but must remain ready to take control at any moment.
Expanding the Robotaxi Network
This Arizona approval represents Tesla’s third major market launch. The company had previously rolled out its robotaxi service in Austin, Texas, about five months prior, and added a supervised ride-hailing program in California shortly after. Tesla also operates a chauffeur-style service with human drivers in the San Francisco Bay Area and holds permits to test autonomous vehicles on public roads in Nevada.
The Road Ahead
While the permit represents significant progress for Tesla’s autonomous vehicle strategy, the requirement for continuous human oversight underscores the current reality of self-driving technology. The company plans to launch services in additional new cities soon, suggesting Arizona is just one step in a broader expansion strategy.
For Arizona residents, the service offers a glimpse into the company’s vision of the future—though that future still includes a human behind the wheel.