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Report: Tesla will roll out Bay Area roboticaxis with safety driver

Business Insider reported Friday that Tesla was preparing to launch its robotaxi service with a safety-driver in San Francisco and Bay Area as early as this weekend. The company is trying to expand rapidly amid falling sales of electric vehicles.

Tesla shares were up by nearly 5% on Friday morning.

Tesla's CEO Elon Musk warned that the robotaxi service would be a challenge for a while due to the unfavorable policy towards electric vehicles. However, revenue from this service and the software will start making a difference by the end of next year.

The company conducted a small robotaxi test in Austin, Texas last month. It used about a dozen Model Y SUVs with a few passengers, and placed human safety monitors on the front passenger seat. Musk did not reveal during Tesla's earnings call Wednesday when safety monitors will be removed. These are expensive for Tesla.

The report cited an internal memo to say that the robotaxis planned for the Bay Area would have humans driving the vehicle. They will be able control it using the steering and brakes.

It added that the robotaxi service would ferry Tesla owners who have been invited to pay a fee in a restricted region covering the Bay Area. This area included Marin, San Francisco, the East Bay and a stretch southwards up to San Jose.

Musk said earlier this month that Tesla would expand into the Bay Area in "a month or two," pending regulatory approvals.

California regulators who failed to respond to Friday's requests for comments

Tesla said that it had not yet submitted the permits required to charge and pick up passengers in its fully autonomous vehicles.

Elon Musk, Tesla's CEO, has shifted the company's focus to robots and self driving taxis after sales of its old EV line plummeted. This bet is a big part of Tesla's trillion dollar valuation.

The Information also reported that Tesla was well behind schedule in meeting Musk's goal to produce at least 5,000 Optimus robots by the end of this year. Tesla has only produced a few hundreds of them.

Tesla has not responded to any requests for comment about the Business Insider and Information stories.

Musk announced during the earnings call of this week that Tesla has received regulatory approval to launch robotaxis across several states including California, Nevada Arizona and Florida.

California Department of Motor Vehicles (DMV) and California Public Utilities Commission (CPUC) permits are required for companies to test and deploy self-driving vehicles in California.

Tesla faces regulatory hurdles as it seeks to gain the confidence of safety officials prior to launching its fully autonomous services. (Reporting from Zaheer Kachwala in Bengaluru, and Abhirup Ro in San Francisco. Additional reporting by Harshita Varghese. Editing by Tasim Zahid and Arun Koyyur.

(source: Reuters)