California permit approval moves Tesla a step closer to directly competing with Uber and Lyft – The Mercury News

By Dana Hull and Kara Carlson | Bloomberg

Tesla Inc. was granted approval in California to begin carrying passengers in its vehicles as Elon Musk’s company takes steps toward offering ride-hailing services.

The California Public Utilities Commission said in an emailed statement Tuesday that it approved the electric-vehicle maker’s bid for what’s known as a transportation charter-party carrier permit. That will allow Tesla initially to drive its employees on a prearranged basis in company-owned vehicles, before later transporting members of the public.

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Bloomberg reported last month that Tesla had applied for the permit as it works to launch a promised ride-hailing business, opening a new revenue stream and putting it in competition with the likes of Uber Technologies Inc., Lyft Inc. and Waymo. Musk has said Tesla would roll out driverless ride-hailing in Austin in June and aimed to offer it in California by the end of the year, without offering specific details.