The company had applied for the permit in June to launch an autonomous ride-sharing trial. With approval now granted, Tesla plans to test robotaxis in the Phoenix Metro area using human safety drivers during the trial phase.

Tesla has not commented publicly on when the trials will begin or how long they will run. However, CEO Elon Musk has previously promised that Tesla will roll out an autonomous ride-hailing service covering nearly half of the U.S. population by the end of this year.

This expansion follows Tesla’s earlier test in Austin, Texas, where around a dozen robotaxis operated in a small zone. That pilot program included strict restrictions, selected passengers only, and safety monitors seated in the front passenger seat.

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With Arizona now on board, Tesla’s driverless future seems one step closer, but questions remain on safety, regulation and how soon the public will trust the technology.

Tesla’s robotaxi approval in Arizona is a major milestone in its journey toward autonomous ride-hailing. The tests could reshape public transport and challenge rivals, but concerns about safety and regulation still cast a shadow. For now, curiosity is high, and the world is watching if Musk’s vision will turn into reality.