• Tesla has launched an invite-only, paid ride-hailing service in the San Francisco Bay Area, marking a significant expansion of its autonomous driving ambitions.
  • The service, which currently requires a safety driver behind the wheel due to California regulations, is now eyeing operations at major airports, according to people familiar with the matter.
  • The move intensifies competition with established players like Uber and Lyft and comes as Tesla faces pressure to find new revenue streams amid declining EV sales.

Tesla Inc. is negotiating for access to pick up and drop off passengers at major San Francisco Bay Area airports as part of its expanding ride-hailing pilot, a significant step that would put it in direct competition with Uber Technologies Inc. and Lyft Inc. on their home turf.

The electric vehicle maker has launched an invite-only service in the region, covering cities including San Francisco, Fremont, and San Jose, using a fleet of vehicles equipped with its Full Self-Driving (FSD) technology. A person with knowledge of the company's plans said efforts are underway to secure the necessary permits and approvals to operate at international airports, though the timeline for such an expansion remains unclear.

Unlike Tesla's pilot program in Austin, Texas, where a trained supervisor can sit in the passenger seat, California regulators mandate a safety driver be present in the driver's seat. The company is currently prohibited from using terms like "taxi" or "robotaxi" until it receives full approval for driverless operations from the California Department of Motor Vehicles and the Public Utilities Commission.

"The Bay Area is the ultimate proving ground for this technology, both in terms of complex urban driving and regulatory scrutiny," said an industry analyst who asked not to be named. "Gaining airport access would be a major credibility boost, but it's also the most challenging environment to get right."

Tesla did not immediately respond to a request for comment on the airport negotiations. The company's CEO, Elon Musk, has publicly stated his ambition to rapidly expand the fleet to over 100 vehicles for the Bay Area service.

The push into ride-hailing, and now airports, is seen as a critical strategic pivot. With electric vehicle sales facing headwinds in 2025, Tesla is under mounting pressure to deliver on its long-promised autonomous driving technology as a new frontier for growth. The data gathered from these paid rides in a dense, complex urban environment is considered invaluable for refining its FSD system.

However, the company faces stiff competition and regulatory hurdles. Rivals Waymo and Cruise have already navigated parts of the regulatory landscape for autonomous vehicles in California, albeit with their own sets of challenges and setbacks. Securing airport access would require Tesla to demonstrate a high level of operational safety and reliability to both regulators and airport authorities, a process that could take considerable time.

For now, the service remains a limited pilot, a cautious first step in a market that will ultimately determine the feasibility of Musk's robotaxi vision.