The move is a key step by the company to begin carrying paying customers while its traditional car-selling business falters.

Tesla (NASDAQ:TSLA) is looking to land approval in California to operate a ride-hailing service in California. The electric vehicle manufacturer applied for a transportation charter-party carrier permit from the California Public Utilities Commission a few months ago,

Tesla has applied for a permit typically associated with chauffeur-operated services, according to California regulators, marking the first phase of a series of regulatory approvals required for the electric car maker to eventually launch a promised robotaxi service.