LAS VEGAS – Tesla’s plan to deploy thousands of driverless taxis in Las Vegas has suffered a major setback after Nevada regulators approved the operation of only 10 robotaxis instead of the 5,000 vehicles the company had sought permission to operate.
The approval, issued on July 27, limits Tesla’s robotaxi service to the Las Vegas Strip corridor for the time being. The vehicles have also been subject to a maximum speed of 72 kilometres per hour.
Tesla was additionally denied permission to pick up passengers at Harry Reid International Airport, despite including airport service in its original application.
Regulators said Tesla would need to obtain fresh approval from the state before expanding either the size of its robotaxi fleet or the area in which the vehicles are permitted to operate.
The approved vehicles must also be clearly marked with the words “Robotaxi.”
Passengers must be informed before their journey that they will be travelling in a driverless vehicle.
Another key condition requires Tesla to maintain “appropriate human oversight” of the robotaxis during operations.
However, the regulatory approval does not specify whether this supervision must involve a safety driver inside the vehicle or whether the cars can instead be monitored remotely.
The approval document also does not explain why the regulator limited Tesla’s proposed fleet to just 10 vehicles when the company had requested permission to operate thousands.
The restrictions represent a cautious approach by Nevada authorities as Tesla seeks to expand its autonomous vehicle operations.
The company has been working to establish driverless taxi services in major US cities, but regulatory approval remains a key hurdle for large-scale deployment.
Tesla will have to demonstrate compliance with the conditions imposed by Nevada authorities before seeking permission to expand its robotaxi operations beyond the currently approved limits.
