Arizona Clears Tesla for Paid Robotaxi Service That Still Requires Safety Drivers

Overview

• Arizona regulators issued Tesla a Transportation Network Company permit on November 17 that allows paid ride-hailing but keeps safety drivers in every vehicle and stops short of fully driverless approval.
• The approval followed a November 13 filing and positions Tesla to operate in Arizona as a second major robotaxi market after Texas.
• Tesla enters a Phoenix area already served by Waymo’s driverless program spanning roughly 315 square miles, setting up direct competition in a key autonomy hub.
• Q3 2025 results showed $28.1 billion in revenue and 497,000 deliveries, with net income down 37% to $1.4 billion and operating margin near 6% versus 11% a year earlier as price cuts, incentives, and AI infrastructure spending weighed on profits.
• Shares fell 2.6% to $398.38 on November 19 as the stock trades around 179 times forward earnings and about 15 times revenue, while Stifel lifted its target to $508 and Tesla reiterates a goal to operate robotaxis in eight to ten metros by year-end subject to approvals.