Tesla said the service would use a variant of its supervised Full Self-Driving software, the report said.

The permit does not allow the company to run vehicles autonomously, the California Public Utilities Commission said.

The most common reaction to this plan has been that because many states, in particular California, require that companies get permits before deploying robotaxi services, that Tesla would need to get ...

"They've got to show progress, and that's what we didn't get," Gene Munster, a managing partner of Deepwater Asset Management who writes about Tesla and Alphabet, told Business Insider.

The automaker also faces a number of financial headwinds, including the loss of a $7,500 tax credit for US EV buyers starting in October, and the vanishing market for regulatory credit sales, which h...