Tesla Stock Rallies On Receiving First Of Approvals For Launching Robotaxi Service In California: Retail’s Still Bearish

Shares of Tesla Inc. (TSLA) rose nearly 3% in Wednesday’s premarket trading after the EV-maker received a transportation-charter-party carrier permit (TCP) permit from a California state regulator on Tuesday, marking the initial step toward launching a robotaxi service in the state.

The California Public Utilities Commission (CPUC) gave Tesla a TCP license type "A" certificate, valid for three years. According to the regulator, the certificate is provided to companies that perform charter services. 

A CPUC spokesperson told Reuters that the certificate does not authorize the company to provide rides in autonomous vehicles or allow Tesla to open a ride-hailing service to the public. 

However, the report said the certificate is required to apply to operate an autonomous ride-hailing service in the state. The company would also need permits from the California Department of Motor Vehicles and CPUC.

In January, Tesla CEO Elon Musk said that the company will start testing autonomous ride-hailing this year in Texas and California with its Model 3 and Y vehicles equipped with its full self-driving (FSD) technology. 

In October, the company also unveiled its two-seater dedicated robotaxi product, the Cybercab, which has no pedals or steering wheel and is slated for production in 2026. 

Musk’s pivot to driverless robotaxis followed the company reporting a fall in vehicle deliveries for the first time in over a decade in 2024. The company delivered 1.79 million electric vehicles in the 12 months through the end of December, marking a drop from the 1.81 million deliveries reported in 2023. 

On Stocktwits, retail sentiment around Tesla stock continues to be in the “bearish” territory while message volume remains “high.”

As of the last close, Tesla stock is down 40.6% this year after the initial optimism regarding regulatory easing for the company under President Donald Trump faded.

The stock has risen over 30% in the past 12 months.

Also See: Morgan Stanley In Spotlight After Reports Of Workforce Reduction, Retail’s Yet To React

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