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Emails reveal regulators were alarmed and confused by Musk’s Bay Area “robotaxi” claims

Tesla’s promised “robotaxi” rollout in the San Francisco Bay Area wasn’t driverless at all—and regulators were blindsided. Emails obtained via public-records requests show California and U.S. officials were alarmed after Elon Musk publicly suggested Tesla was “getting the regulatory permission to launch,” even though the company had not applied for the permits required to test or operate autonomous taxis in California. Tesla’s actual plan was invite-only rides in human-driven vehicles under a limousine-style permit that doesn’t allow on-demand robotaxis.

Officials at the California Public Utilities Commission and NHTSA pressed Tesla to clarify public statements to avoid “public confusion.” Tesla’s policy staff told the state it would inform customers “when available” and generally doesn’t respond to press, while Musk continued to tout robotaxi scale on X and to blur the term with Tesla’s “Full Self-Driving” driver-assist feature that still requires an attentive human driver.

The regulatory skepticism comes as Tesla pushes for rapid robotaxi expansion and seeks to test in permissive states such as Arizona and Nevada, where approvals for autonomous testing with safety drivers are advancing—still far from fully driverless commercial operations. California authorities reiterate that separate DMV and CPUC permits are prerequisites for any paid driverless service in the state, and Tesla hasn’t obtained them.

Beyond the Bay Area episode, the gap between marketing and regulatory filings will matter more as investors weigh Musk’s ambitious timelines against legal guardrails. Agencies say Tesla must “properly and accurately” describe services—clearly distinguishing human-driven pilots from autonomy—if it wants to avoid enforcement headaches as it scales.

Tesla gains approval to test robotaxis in Arizona

Tesla has secured approval from the Arizona Department of Transportation to begin testing autonomous robotaxi vehicles in the Phoenix metro area, the agency confirmed Friday. The trials will initially involve cars equipped with safety drivers to monitor operations.

Tesla applied for the permit in June as part of CEO Elon Musk’s plan to launch an autonomous ride-hailing service that could reach half of the U.S. population by the end of the year. While no start date or trial duration has been disclosed, Arizona’s approval marks a significant expansion of Tesla’s robotaxi testing beyond its limited pilot in Austin, Texas, launched earlier this year.

In Austin, Tesla trialed about a dozen vehicles under strict conditions, including a safety monitor in the front passenger seat and a select group of passengers. The Arizona expansion puts Tesla into one of the nation’s most competitive self-driving markets, where Waymo and Cruise have already been testing robotaxi services.

The approval reflects growing state-level support for autonomous vehicle experimentation, even as federal regulators continue to scrutinize safety and data transparency. For Tesla, success in Arizona could provide critical validation for its long-promised robotaxi ambitions.

Panasonic targets breakthrough EV battery within two years

Panasonic (6752.T) said it aims to develop a new type of higher-capacity battery in about two years, a potential game-changer for electric vehicles and a boost for key customer Tesla (TSLA.O).

The Japanese company is working on an anode-free design that could deliver what it calls a “world-leading level” of energy density by the end of 2027. If successful, the innovation would increase battery capacity by about 25%, extending the range of Tesla’s Model Y by nearly 90 miles (145 km) without enlarging the pack.

Alternatively, Panasonic could use the technology to create lighter, potentially cheaper batteries that maintain current driving ranges with smaller packs. A company executive discussed the project ahead of a Thursday presentation by Shoichiro Watanabe, chief technology officer at Panasonic Energy.

The design removes the anode during manufacturing. Instead, a lithium metal anode forms inside the cell after its first charge, freeing up space for more cathode materials—nickel, cobalt, and aluminum—that boost capacity without increasing size. Panasonic also aims to cut the proportion of costly nickel.

While several global battery producers are pursuing similar technology, Panasonic stressed its version could deliver industry-leading performance. The company declined to provide details on manufacturing costs or whether the advance would allow Tesla to lower vehicle prices.

The push comes as Tesla faces growing competition. Reuters reported earlier this month that Tesla’s U.S. market share fell to its lowest in almost eight years in August, pressured by a flood of rival EV offerings and its aging product lineup.