Tesla Inc. has cleared a key regulatory hurdle in its push to launch autonomous ride-hailing services across Texas. The company, through its subsidiary Tesla Robotaxi LLC, has been granted a rideshare license by the Texas Department of Licensing and Regulation (TDLR), classifying it as a transportation network company alongside established players like Uber and Lyft.

The permit allows Tesla to operate statewide ride-hailing services but does not authorize fully driverless operations. To deploy vehicles without human drivers, Tesla must obtain separate approval from the Texas Department of Motor Vehicles (DMV) under new regulations taking effect September 1, 2025. These forthcoming rules, established by Senate Bill 2807, will require companies to meet stringent safety, insurance, and compliance standards before receiving a driverless green light.

Tesla has been piloting its robotaxi service in Austin since June 22, using a small fleet of Model Y vehicles equipped with safety personnel in the passenger seat. The rides, offered at a promotional $4.20 fare, represent a cautious step toward the company’s long-promised vision of an autonomous mobility network.

The Texas permit positions the state as a prime battleground in the race for robotaxi dominance. Industry rivals such as Waymo are also eyeing the market, drawn by Texas’s relatively permissive stance compared to states like California.

While Tesla’s new license marks a significant milestone, the company’s ability to scale its service without drivers will depend on clearing the DMV’s upcoming safety and regulatory requirements. With federal scrutiny on autonomous vehicles intensifying, the next few months could prove decisive for the company’s ambitions.