Tesla is set to introduce a chauffeur-style ride service in the San Francisco Bay Area, utilizing human drivers rather than autonomous vehicles, according to a statement from a California regulator on Friday. This clarification comes in response to reports suggesting Tesla was preparing to deploy a robotaxi service in the region.

A spokesperson for the California Public Utilities Commission (CPUC) confirmed that Tesla lacks the necessary permits to operate autonomous vehicles for public transport and has not applied for them. Unlike competitors such as Alphabet’s Waymo, which operates fully autonomous ride-hailing services, Tesla’s upcoming service will rely on human drivers operating traditional vehicles under a charter service permit. Tesla did not provide a comment when approached for clarification.

During Tesla’s recent earnings call, CEO Elon Musk hinted at plans to launch a robotaxi service in multiple markets, including the Bay Area, pending regulatory approval. However, a Business Insider report suggested the service would involve human drivers overseeing vehicles, contrary to a fully autonomous operation. Ashok Elluswamy, Tesla’s head of autonomous driving, further clarified that the company aims to roll out a service with human drivers to expedite operations while awaiting further regulatory clearance.

Tesla recently trialed a robotaxi service in Austin, Texas, using a small fleet of Model Y SUVs equipped with autonomous driving software but monitored by human safety operators in the passenger seat. In contrast, the Bay Area service will not involve autonomous vehicles. The CPUC spokesperson emphasized that Tesla is restricted from testing or transporting passengers in autonomous vehicles, even with a safety driver, and is limited to using human drivers in non-autonomous vehicles for this service.

Under its existing charter service permit, Tesla plans to offer rides to a select group, including employees’ friends and family and certain members of the public. The company may employ its Full Self-Driving (Supervised) system, which supports advanced driving tasks but requires constant human supervision, though this does not necessitate an autonomous vehicle permit in California.

To operate fully autonomous vehicles in California, companies must secure multiple permits from both the CPUC and the California Department of Motor Vehicles (DMV). Tesla currently holds a DMV permit for testing autonomous vehicles with a safety driver but has not applied for additional permits to charge fares or test without a driver. A DMV spokesperson noted that Tesla recently met with the agency but has not pursued further approvals.

The regulatory process for autonomous vehicles in California is rigorous. Companies like Waymo, which has operated autonomous ride-hailing in the Bay Area and Los Angeles, spent nearly a decade and logged over 13 million testing miles to secure the necessary approvals to charge passengers for driverless rides in 2023. Tesla’s next step would involve applying for a CPUC autonomous vehicle license to transport passengers with a safety driver, but it must first complete a pilot phase without charging fares.