Electric vehicle maker Tesla (TSLA) has received a new permit to operate as a transportation network company in Arizona, according to the state’s Department of Transportation.
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The permit means that Tesla, led by CEO Elon Musk, is able to operate as a ride-hailing service provider in the southern U.S. state. The operating license was granted through a Vehicle for Hire permit issued under Arizona state regulations.
This permit enables Tesla to establish ride-hailing operations in Arizona, expanding its business beyond electric vehicle manufacturing in the state. The permit is important as it will help Tesla in its ambitions to become a robotaxi and ride-hailing company nationally.
Chasing Waymo
Arizona is the third U.S. state to grant Tesla a ride-hailing operating permit after Texas and California. Tesla still has a ways to go to catch rival Waymo. The Alphabet-owned (GOOGL) company is currently operating its competing ride-hailing service in five U.S. states: Arizona, California, Georgia, Texas, and Florida.
Since 2016, Elon Musk has promised that Tesla would soon be able to turn all of its existing electric vehicles into fully autonomous vehicles with an over-the-air software update. In 2019, he said the company would put one million robotaxis on the road by 2020. However, that promise has yet to materialize.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 14 Buy, 10 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $384.14 implies 4.26% downside from current levels.
