Tesla moves toward launching Uber competitor
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Tesla is taking steps to launch a ride-sharing service that could compete directly with Uber, Lyft and Waymo.
Why it matters: Tesla has long pledged to run an autonomous vehicle network, which could become a significant new source of revenue at a time when its sales have flattened.
Between the lines: The company has filed for a transportation charter-party carrier permit from the California Public Utilities Commission, Bloomberg reported Thursday.
- "That classification means Tesla would own and control the fleet of vehicles," Bloomberg reported.
State of play: CEO Elon Musk told investors in January that "I'm confident that we will release unsupervised FSD in California this year," referring to the company's Full Self-Driving system.
- The automaker also plans to launch a car service in Austin, Texas.
- "We're just putting our toe in the water, then a few toes, then a foot, then leg," Musk said in January, adding that "we're looking for a safety level that is significantly above the average human driver."
Zoom out: Tesla investors are in need of encouraging news after a bruising start to the year.
- The stock is down about 25% year-to-date after surging following the election, when investors were betting that Musk's closeness to President Trump would pay off in favorable treatment for his business interests.
- Its sales have also stagnated as investors await new products.
How it works: "In its communications with California officials, Tesla discussed driver's license information and drug-testing coordination, suggesting the company intends to use human drivers, at least initially," Bloomberg reported.
- The company is seeking the same type of permit that Waymo uses to run its robotaxi business.
The other side: Uber is gearing up to begin offering autonomous vehicle services in partnership with Waymo in Austin and Atlanta later this year.
