Electric vehicle maker Tesla has secured the first in a series of permits it needs from California to run its highly anticipated self-driving robotaxi service in the state.
The California Public Utilities Commission has announced that it has approved Tesla’s application for a transportation charter-party carrier permit, a license typically associated with chauffeur-operated services. The permit and classification enables Tesla to own a fleet of vehicles and transport employees on pre-arranged trips.
However, while the California permit is the first one that’s needed and a step in the right direction, it is not the permit Tesla needs to run ride-hailing services or autonomous vehicles within the U.S. west coast state. Tesla applied for the permit it has received in November of last year, said the regulator.
Big Plans
So far, Tesla has not applied for the other permits it needs to run robotaxis in California and the company has a ways to go to achieve its goal of operating self-driving vehicles in the state. However, Tesla has big plans for its robotaxi, which it also calls a Cybercab.
The company run by CEO Elon Musk plans to start selling robotaxis as early as next year. Tesla has shown concepts of the vehicle since its official unveiling last October. The self-driving robotaxi will contain about half the parts of Tesla’s most affordable electric vehicle, the Model 3. Musk has said that autonomous vehicles are Tesla’s future.
TSLA stock has declined 44% this year.
Is TSLA Stock a Buy?
The stock of Tesla currently has a consensus Hold rating among 37 Wall Street analysts. That rating is based on 12 Buy, 13 Hold, and 12 Sell recommendations issued in the last three months. The average TSLA price target of $323.83 implies 44.14% upside from current levels.
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