Tesla Wants To Expand Its Auto Business Beyond EVs - CarBuzz

You may be able to ride a Tesla Model 3 or a Model Y soon – that’s if you live in California and if the EV maker’s application pushes through. Tesla has reportedly applied for an application to start a ride-hailing business in California, in hopes of expanding its automotive business beyond selling EVs, possibly targeting segment stalwarts like Uber, Lyft, and eventually, Waymo.

Tesla’s application was discovered by Bloomberg, which had access to the documents. According to the publication, the application was for a so-called transportation charter-party carrier permit, submitted to the California Public Utilities Commission late last year. That permit will allow Tesla to own and operate a fleet of vehicles for ride-hailing services. However, if you’re expecting your Tesla cab to self-drive, you’d be disappointed.

Drivers Are Involved, At First

While Tesla has declared its intention to launch its driverless robotaxi service in Austin, Texas by June this year, the recently discovered ride-hailing service will reportedly start with humans involved. Based on the documents, the Texas-based automaker involves driver’s license information and drug-testing as part of the process. However, this could just be the initial plan, since Tesla has applied for the same permit that Waymo has.

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The application hasn’t been approved and isn’t public, according to a Tesla spokesperson in an email to Bloomberg. That said, it isn’t clear whether Tesla’s application will be approved, or when it will start if it happens. What Tesla has now is the permit to test autonomous vehicles in California, but with a safety driver on board. Testing and deployment of driverless Teslas is still not allowed at the time of this writing, albeit previous reports point to Tesla’s intention to do so in Palo Alto.

Ride-Hailing Service Application Amid Decline In EV Demand

Tesla’s application to join the ride-hailing service came at a time when the automaker reported its first annual sales decline in over a decade. The integration of ride-hailing services into its business could host an additional revenue stream for the company amid a projected global decline in interest in EVs.

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The ride-hailing service also supports Tesla’s plan to deploy its CyberCab in the near future. The autonomous vehicle, which doesn’t have a steering wheel or driving pedals, was introduced last year, together with a self-driving van or bus that could bear the “Robus” name. Tesla aims to launch both vehicles/services next year.