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Tesla Begins Public Autonomous Vehicle Testing in Nevada

Tesla has secured a Nevada DMV testing permit to begin public-street trials of its autonomous vehicle technology, part of CEO Elon Musk’s push to expand robotaxi operations beyond Austin into markets like the Bay Area, Arizona, and Florida. Nevada’s rules require $5M insurance and incident reporting; commercial robotaxi service will need additional state approvals.

Published September 11, 2025 at 05:10 PM EDT in Artificial Intelligence (AI)

Tesla Secures Nevada Permit for Public AV Testing

Tesla has received a Nevada Department of Motor Vehicles testing certificate that authorizes its autonomous vehicles to operate on public streets. The permit was first flagged by Tesla observer Sawyer Merritt and follows CEO Elon Musk’s plans to expand the company’s robotaxi ambitions beyond Austin into markets including the Bay Area, Arizona, and Florida.

Tesla already began driverless Model Y rides in South Austin earlier this summer with an employee in the front passenger seat. The Nevada move signals the company is taking the next regulatory step to broaden public testing as it attempts to scale autonomous ride-hailing nationwide.

  • Certificate of Compliance and red license plates issued by the Nevada DMV
  • Proof of at least $5 million insurance coverage required for testing
  • Obligation to report traffic incidents to the DMV within 10 days
  • Additional regulatory approvals — such as Nevada Transportation Authority sign-off — are required for commercial robotaxi operations

Nevada is known for being AV-friendly and has been a magnet for testing: Motional and Lyft ran public trials in Las Vegas, Nuro built a closed test track, and Zoox launched a public robotaxi rollout there. That ecosystem makes the state attractive for companies like Tesla that want to iterate quickly under permissive regulations.

But permission to test is only the beginning. Scaling to a commercial robotaxi business means meeting additional oversight, proving safety at scale, and building infrastructure for operations, insurance, incident response, and customer service. Regulators will expect robust reporting and clear evidence that the technology is safe across diverse urban environments.

For cities and agencies, Tesla’s move underscores the need to prepare for more autonomous traffic on public streets — from curb management and data-sharing agreements to revised safety standards. For competitors, it tightens the race to demonstrate repeatable, auditable safety outcomes.

From a practical standpoint, successful expansion depends on three interlocking capabilities:

  • Data collection and validation to prove the system’s safety across conditions
  • Operational infrastructure for remote monitoring, incident response, and scaling fleet logistics
  • Regulatory and insurance frameworks that align incentives and provide transparent oversight

Tesla’s Nevada permit is a tactical win in a larger strategic push. If the company can demonstrate consistent safety and secure the additional commercial approvals needed, the quick rollout Musk describes — reaching large swaths of the U.S. population later this year — becomes more plausible. That said, regulators and public perception will play decisive roles.

For organizations tracking autonomous mobility, the lesson is clear: prepare for multi-jurisdiction complexity, focus on measurable safety outcomes, and build systems that make compliance auditable. The companies that combine strong engineering with rigorous operational and regulatory playbooks will lead the next phase of robotaxi deployments.

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