Elon Musk announced that Tesla plans to introduce its robotaxi service in Arizona, Nevada, and Florida by the end of 2025, pending regulatory approvals. The move comes as Arizona continues to serve as a key hub for autonomous vehicle testing. State Senator David Farnsworth welcomed the development, hoping it will increase competition and expand access to self-driving taxis.
Arizona has been a major center for autonomous vehicle development over the past decade, attracting companies like Waymo, which began testing in Chandler in 2017 and launched public service in the Phoenix metro area in 2020. Now, Tesla aims to enter this market with its robotaxi service.
During an investor call, Tesla CEO Elon Musk stated that the company plans to launch the service in eight to ten metropolitan areas by the end of the year. “It depends on various regulatory approvals … but we expect to be operating in Nevada and Florida and Arizona by the end of the year,” Musk said, as reported by the Arizona Republic.
Tesla is one of 13 companies that have submitted paperwork to test autonomous vehicles in Arizona, according to the Arizona Department of Transportation. Currently, Tesla's vehicles operate with a driver on board. The company has submitted self-certification documentation complying with the state's permissive regulations, which require vehicles to meet federal laws, state traffic rules, and safety standards. To run a commercial robotaxi service, Tesla would need a separate transportation network company permit, similar to any taxi service.
State Sen. David Farnsworth (R-Mesa), who chaired the Senate transportation committee last year, praised the announcement. “We know that Waymo has the largest footprint in Maricopa County of any place in the world, and so it's natural, I think, for Tesla and Uber to want to come in and compete, and I welcome that,” he said. “I think that's excellent news.” Farnsworth recently urged Uber to launch its own self-driving service in underserved areas like east Mesa, San Tan Valley, and Apache Junction, but Uber pointed to its 2023 partnership with Waymo, allowing users to hail Waymo vehicles via the Uber app in Phoenix.
Uber was an early tester in Arizona starting in 2015 but suspended operations in 2018 after a fatal crash. Tesla has also faced criticism over crashes involving its self-driving technology, though Musk has defended its safety. Farnsworth maintains that autonomous vehicles are the safest option, a view echoed by industry claims, though a University of Central Florida study notes insufficient data for firm conclusions.