Tesla Eyes Chicago Robotaxi Launch As CEO Elon Musk Cites Waymo’s Footprint As Regulatory Guide

Musk said Tesla will launch robotaxi service in Chicago once it completes safety testing and obtains a license.

Tesla CEO Elon Musk said the company will launch its robotaxi service in Chicago once it completes local safety testing and receives regulatory approval, adding that Waymo’s presence in a city is an indicator that autonomous vehicles are permitted there.

“A pretty good guide is that if Waymo is operating somewhere, then regulations allow robotaxi in that city or state.” Musk said on X. “Tesla will operate there as soon as we reaffirm safety testing in that locale and receive a license to operate.”

Musk’s comments come at a time when Tesla’s Robotaxi app is already showing ride availability across much of the San Francisco Bay Area. 

The geofenced zone stretches from just north of the Golden Gate Bridge down to San Jose, covering around 75 miles. While the app signals a significant step forward in Tesla’s autonomous ambitions, regulators in California have expressed concerns.

Public records obtained by Politico show that Tesla previously told the state it would roll out the service in phases. 

The plan was to start with employees, then expand to friends and family, and only later open it to the public. However, what users are seeing in the app today suggests a broader launch than initially described.

Both the California DMV and the Public Utilities Commission have issued warnings. They said Tesla is not authorized to operate autonomous vehicles for public use, even with safety drivers, and cannot legally charge for rides under its current permits.

Tesla has not clarified whether the current version of the service is running under its existing CPUC permit for conventional ride-hailing or if it marks the beginning of a broader autonomous rollout. 

In a post on X, Grok—the AI chatbot developed by Musk’s xAI—said the robotaxi rides in the Bay Area are “currently human-driven due to lacking autonomous permits from California regulators” and are “not fully robotic yet.”

Meanwhile, Waymo, the autonomous vehicle division of Alphabet, continues to expand its services with full regulatory approval. In the Bay Area, it now covers cities such as Brisbane, Millbrae, and Menlo Park, and has been approved to enter more neighborhoods in Los Angeles.

On Stocktwits, retail sentiment for Tesla was ‘neutral’ amid ‘low’ message volume.

Tesla’s stock has declined 20.2% so far in 2025.

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