Elon Musk revealed on the social media platform X last night why Tesla could not call its autonomous ride-hailing service “Robotaxi” upon its launch in California as it did in Austin, Texas.

Tesla has been operating Robotaxi ride-hailing services in the United States for less than two months, as it launched its first rides in Austin on June 22. Last month, Tesla officially launched rides in California’s Bay Area, but it only referred to it as a “ride-hailing service.”

Invites to our Bay Area ride-hailing service are going out now pic.twitter.com/4Ql4XfSLvC

— Tesla AI (@Tesla_AI) July 31, 2025

Some outlets reported that it was not the “Robotaxi” fleet, but in reality, Tesla did not have the ability to use the terms “taxi” or “cab” in the state, Musk revealed on Wednesday night.

He said:

We are working as quickly as possible to get 100+ Teslas operating for autonomous ride-hailing (can’t use the word “taxi” or “cab” in California) in the Bay Area and allow anyone to request a ride

— Elon Musk (@elonmusk) August 6, 2025

On the heels of announcing that Tesla was planning to expand its fleet for the service to 100 vehicles, Musk revealed that California does not allow automakers operating pilot programs of driverless services to use the terms “cab” or “taxi.”

It is a regulation enacted by the California Public Utilities Commission (CPUC), which does not allow those terms to be used for vehicles that are not fully autonomous.

The CPUC did not immediately respond to a request for comment regarding the terminology. If a representative clears up the terminology, we will add it to this article.

Based on filings from other companies on the CPUC website, it appears that the terms “robotaxi” or even “robocab” are set aside for cars that are completely driverless and not under any direct supervision.

Tesla is using a Safety Monitor in its vehicles in Austin in the passenger seat. In California, this monitor is behind the steering wheel. In order for Tesla to call it a Robotaxi, it seems the in-car monitor will have to be removed altogether.

Tesla Energy held its top position in the global battery energy storage system (BESS) integrator market for the second consecutive year, capturing 15% of global market share in 2024, as per Wood Mackenzie’s latest rankings.

Tesla Energy’s lead, however, is shrinking, as Chinese competitors like Sungrow are steadily increasing their global footprint, particularly in European markets.

Tesla Energy dominates in North America, but its lead is narrowing globally

Tesla Energy retained its leadership in the North American market with a commanding 39% share in 2024. Sungrow, though still ranked second in the region, saw its share drop from 17% to 10%. Powin took third place, even if the company itself filed for bankruptcy earlier this year, as noted in a Solar Power World report. 

On the global stage, Tesla Energy’s lead over Sungrow shrank from four points in 2023 to just one in 2024, indicating intensifying competition. Chinese firm CRRC came in third worldwide with an 8% share.

Wood Mackenzie ranked vendors based on MWh shipments with recognized revenue in 2024. According to analyst Kevin Shang, “Competition among established BESS integrators remains incredibly intense. Seven of the top 10 vendors last year struggled to expand their market share, remaining either unchanged or declining.”

Chinese integrators surge in Europe, falter in U.S.

China’s influence on the BESS market continues to grow, with seven of the global top 10 BESS integrators now headquartered in the country. Chinese companies saw a 67% year-over-year increase in European market share, and four of the top 10 BESS vendors in Europe are now based in China. In contrast, Chinese companies’ market share in North America dropped more than 30%, from 23% to 16% amid Tesla Energy’s momentum and the Trump administration’s policies.

Wood Mackenzie noted that success in the global BESS space will hinge on companies’ ability to adapt to divergent regulations and geopolitical headwinds. “The global BESS integrator landscape is becoming increasingly complex, with regional trade policies and geopolitical tensions reshaping competitive dynamics,” Shang noted, pointing to Tesla’s maintained lead and the rapid ascent of Chinese rivals as signs of a shifting industry balance.

“While Tesla maintains its global leadership, the rapid rise of Chinese integrators in Europe and their dominance in emerging markets like the Middle East signals a fundamental shift in the industry. Success will increasingly depend on companies’ ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions,” the analyst added.

Tesla seems determined to provide autonomous ride-hailing services to regular customers in the Bay Area. As per Elon Musk in recent comments on social media platform X, Tesla is currently working to expand its fleet for its Bay Area pilot, which should allow the company to provide ride-hailing services to more customers. 

Tesla Robotaxi Bay Area rollout

At the end of last month, Tesla launched its Robotaxi service in the Bay Area. The Bay Area geofence for Tesla’s Robotaxi pilot is massive, dwarfing the Austin geofence’s current 80 square miles. Customers who opt for a ride from one end of the Bay Area geofence to the other could expect to travel about 65 miles, a 1 hour 15 minute commute.

Tesla, however, has been careful not to brand its ride-hailing service in the Bay Area as a Robotaxi pilot. Unlike in Austin, Tesla’s pilot in the Bay Area also uses a safety driver in the driver’s seat. Elon Musk mentioned on X that Tesla has to be careful not to use the words “taxi” or “cab” in California to describe its current pilot. 

Bay Area fleet expansion

Apart from his comment about the Bay Area pilot’s name, Elon Musk also noted that Tesla is looking to expand its fleet in its ongoing pilot. As per the CEO, Tesla is currently “working as quickly as possible to get 100+ Teslas operating for autonomous ride-hailing in the Bay Area.” Musk stated that this expansion should allow “anyone to request a ride.”

While the Tesla Robotaxi pilot in Austin and the Bay Area are still only in their initial stages, they are growing very quickly. The Austin geofence was expanded weeks into its launch, and expectations are high that another expansion will be coming soon. With more autonomous cars available in the Bay Area soon, Tesla’s ride-hailing service could very well become a common sight on public roads sooner than expected.