Tesla (NASDAQ: TSLA) stock jumped about 3% in pre-market trading Wednesday following news that the EV giant gained initial approval for its robotaxi service in California.
Tesla has secured the first in a series of necessary approvals from a California state regulator, marking a significant step toward launching its autonomous taxi service. The company has long pitched robotaxis as a crucial part of its strategy to dominate the electric and self-driving car markets.
While the exact timeline for the service’s launch remains uncertain, Tesla still requires additional state approvals before it can begin operations. However, this initial approval signals progress in the company’s expansion efforts.
As Tesla moves forward, it will need to meet certain regulatory standards set by California. State authorities will closely monitor the company to ensure the service complies with safety and operational guidelines.
Toronto Ends Tesla EV Incentives Amid Trade Tensions
In a separate development, Toronto has removed financial incentives for Tesla (NASDAQ: TSLA) vehicles purchased as taxis or for ride-sharing services. The city’s mayor, Olivia Chow, announced the decision on Monday, citing trade tensions between the U.S. and Canada.
The city has been promoting EV adoption for commercial use by offering drivers and owners discounts on licensing and renewal fees until the end of 2029 to help lower emissions. Tesla vehicles were part of this program until recently.
However, as of March 1, Tesla vehicles are no longer eligible for these incentives, Chow said at a news conference. She added that this exclusion would remain in effect until trade tensions between the U.S. and Canada are resolved.
