Tesla Cleared To Test Self-Driving Robotaxis In Arizona, Expanding Ambitions Beyond Austin

Tesla Inc. TSLA has been given the green light to start testing self-driving robotaxi cars with safety monitors in Arizona. This is another step in the company’s effort to roll out its ride-hailing services across the country.

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Arizona Permits Phoenix Metro Testing

The Arizona Department of Transportation confirmed on Friday that Tesla has received approval to test robotaxis in the Phoenix Metro area, with safety drivers on board, according to Reuters. Tesla had applied for the permit back in June to conduct trials for its self-driving ride-sharing service.

Tesla did not immediately respond to Benzinga's request for comment.

The approval comes after Tesla's first robotaxi rollout in Austin, Texas, in June, where they tested around a dozen vehicles equipped with safety monitors. CEO Elon Musk has mentioned that Tesla aims to launch its autonomous ride-hailing services to reach about half of the U.S. population by the end of 2025.

Federal Regulations Ease Under Trump

Tesla’s expansion comes as Transportation Secretary Sean Duffy recently announced that the National Highway Traffic Safety Administration (NHTSA) will ease autonomous driving regulations. The timing benefits Tesla’s robotaxi ambitions as federal standards adapt to self-driving technology.

Duffy stated, “The rules of the road need to be updated to fit the realities of the 21st century.”

Mixed Regulatory Signals

Despite Duffy’s deregulation push, Trump’s NHTSA administrator pick, Jonathan Morisson, has called for tougher autonomous driving oversight, creating potential policy conflicts.

Senator Josh Hawley (R-MO) also plans to introduce legislation effectively banning fully autonomous driving, calling such vehicles “terrible for working people.”

Competition Intensifies

Tesla is facing increasing competition from established players, including Alphabet Inc.‘s GOOG GOOGL subsidiary Waymo and Amazon.com Inc.‘s AMZN subsidiary Zoox, in the robotaxi market.

Price Action: According to Benzinga Pro data, the Texas-based automotive company closed at $426.07 on Friday, up by 2.21%.

Benzinga's Edge Stock Rankings indicates TSLA has a Momentum score of 91.28 and a Growth score of 75.57, with its price trend showing an upward movement across short, medium, and long-term periods. Track the performance of other players in this segment.

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