Building Out the Fleet, One Registration at a Time

Tesla Inc. (TSLA) is making a serious push into ride-hailing territory. The electric vehicle maker has registered more than 1,655 vehicles for its California ride-hailing fleet since launching the service back in August, according to a spokesperson from the California Public Utilities Commission (CPUC) cited by Business Insider on Sunday.

Here's where it gets interesting: that number might actually be on the conservative side. The CPUC spokesperson clarified that companies aren't required to continuously update the agency on driver additions, and the figure represents registered vehicles rather than the actual operational fleet. So Tesla could have more cars out there doing rides than the official count suggests.

One important detail worth emphasizing is that Tesla's ride-hailing service in California isn't registered as an autonomous fleet. The company operates with limited public access and hasn't applied for a driverless permit in the state. This approach has reportedly raised some eyebrows among officials, which makes sense given the regulatory scrutiny around autonomous vehicles.

How Tesla Stacks Up Against the Competition

For context, Alphabet Inc. (GOOGL) (GOOG)-backed Waymo has registered over 1,955 vehicles as autonomous cars in California, giving it a clear lead in the autonomous ride-hailing space. Meanwhile, Amazon.com Inc. (AMZN)'s pod-shaped robotaxi maker Zoox has 229 vehicles registered.

The numbers tell a story: Tesla is building scale quickly, but it's playing a different game than Waymo, at least for now. No autonomous permits means human drivers are still behind the wheel.

Testing the Driverless Future in Texas

While California gets the human-driven fleet, Tesla CEO Elon Musk has confirmed the company is conducting driverless testing of its Robotaxis in Austin. A Model Y was spotted cruising Austin streets without any occupants, which is exactly the kind of thing that makes people pull out their phones and start recording.

An updated Tesla Cybercab was also seen around Austin shortly after the driverless Model Y sighting, though observers couldn't immediately confirm whether a human was driving or if the vehicle was operating autonomously. Either way, it's clear Austin is becoming Tesla's testing ground for the autonomous future it's been promising.

When the Lights Go Out, Robotaxis Stop

Speaking of autonomous challenges, a blackout in San Francisco recently brought Waymo's robotaxi fleet to a complete standstill. Multiple Waymo Jaguar I-Pace robotaxis ended up stranded in the middle of roads across the city, forcing the company to temporarily suspend service.

The outage traced back to a PG&E Corp. (PCG) substation failure at 8th and Mission in San Francisco, which knocked out power for over 130,000 customers. It's a reminder that even the most sophisticated autonomous systems can be vulnerable to basic infrastructure failures.

California Court Pulls Tesla's License

Now for the bigger problem. A California court has suspended Tesla's license to manufacture and sell vehicles in the state, which is about as serious as regulatory actions get for an automaker. The judgment centered on Tesla's marketing around Autopilot and Full Self-Driving features, which the court found misleading to the public regarding their actual capabilities.

The court made clear what should be obvious: Tesla's vehicles cannot be driven autonomously without human supervision. This isn't just a technicality or regulatory nitpicking. It's a fundamental distinction between advanced driver assistance and true autonomous driving, and apparently Tesla's marketing blurred that line too much for the court's comfort.

This comes at an awkward time for Tesla, which is already dealing with sales challenges. The latest data shows the company recorded a 23% decline in November sales in the U.S. compared to the prior year. Losing the ability to manufacture and sell in California, one of its most important markets, adds another layer of difficulty to an already tough situation.

Tesla scores well on Momentum and Quality metrics while offering satisfactory Growth, but poor Value. The stock also shows a favorable price trend across Short, Medium and Long term timeframes.

Price Action: According to market data, TSLA declined 0.45% to $481.20 at market close on Sunday. The stock gained 0.30% to $482.65 during after-hours trading.