Elon Musk and Tesla are pushing the boundaries of autonomous transportation once again, this time with a subtle “ride-hail” service launching in the San Francisco Bay Area. While they’re carefully avoiding terms like “robotaxi” or “self-driving,” the service looks suspiciously like a test of their autonomous vehicle technology.

The new service covers an expansive area including southern Marin County, parts of the East Bay, the entire San Francisco Peninsula, and San Jose. Tesla is rolling out invitations to a select group of users, reminiscent of their Austin launch, but California’s regulatory landscape is far more complex than Texas’s relatively lax autonomous vehicle rules.

California has strict permitting requirements for autonomous vehicles, which Tesla seems to be navigating carefully. Currently, Tesla only has a license for “chauffeur” service, which requires a human driver at the wheel. This nuanced approach suggests the company is testing the regulatory waters.

State Senator Scott Wiener has been vocal about potential regulatory violations, warning that vehicles deployed without proper permits could be seized and impounded. This stance underscores the serious regulatory scrutiny Tesla faces.

The autonomous vehicle market in the Bay Area is competitive and challenging. Waymo, another major player, has spent years meticulously testing its vehicles and still doesn’t have freeway permits. The recent collapse of Cruise’s robotaxi service serves as a cautionary tale for ambitious autonomous vehicle companies.

Tesla’s vehicles for this service are essentially standard models equipped with additional visual sensors and an upgraded version of their “full-self-driving” software. However, this software is currently embroiled in multiple lawsuits, including a pending case from California’s Attorney General.

As Musk continues to push technological boundaries, the Bay Area remains a critical testing ground for autonomous vehicle innovation. Whether this “ride-hail” service represents a genuine breakthrough or another calculated regulatory maneuver remains to be seen.