Tesla was granted approval in California to begin carrying passengers in its vehicles as Elon Musk’s company takes steps toward offering ride-hailing services.
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The California Public Utilities Commission said in an emailed statement Tuesday that it approved the electric-vehicle maker’s bid for what is known as a transportation charter-party carrier permit. That will allow Tesla initially to drive its employees on a prearranged basis in company-owned vehicles, before later transporting members of the public.
Bloomberg reported last month that Tesla had applied for the permit as it works to launch a promised ride-hailing business, opening a new revenue stream and putting it in competition with the likes of Uber Technologies, Lyft and Waymo. Musk has said Tesla would roll out driverless ride-hailing in Austin in June and aimed to offer it in California by the end of the year, without offering specific details.
The new permit is separate from those used by ride-hailing companies, which offer similar services for compensation using smartphone apps. The approval also does not allow Tesla to offer rides in autonomous vehicles, the California commission said.
Tesla’s shares reversed postmarket declines on news of the permit, rising 0.4 per cent as of 4.55pm in New York.
Musk said on a call with investors late last year that the company was already offering transportation to employees in the Bay Area with a safety driver using a Tesla-developed app.
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The company did not immediately respond to a request for comment.