Tesla's robotaxi ambitions in California face regulatory hurdles as the CPUC clarifies that autonomous vehicle testing and public transportation are prohibited without a human driver. While Tesla holds a permit for a private car service with drivers,

This suit has been brewing for some time. The state DMV started investigating Tesla for possible misleading advertising in 2021 and then sent an official inquiry to the automaker roughly a year later.

The company said its timeline for Robotaxi launch had been moved up and the service could launch as soon as Friday.

Tesla is launching an even-more-limited version of its early robotaxi service in San Francisco this weekend, according to Business Insider, after an initial rollout began last month in Austin, Texas. The company plans to send invites to Tesla owners to test the service, according to the report.

The largest EV market in the US alleges that the largest EV manufacturer is misleading drivers with its autonomous claims.

Tesla's registrations in the West Coast state fell more than 20% in the second quarter compared with the previous year, according to new data.

Tesla and its CEO Elon Musk are walking an increasingly difficult tightrope as the company navigates declining electric vehicle sales and an autonomous driving business that has yet to get off the ground.