Tesla sent robotaxi users a new terms-of-service agreement detailing its planned launch in California's Bay Area, Business Insider reported citing a screenshot of the notification sent to users on Sa...

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

Regulatory hurdles pose a challenge to Tesla as it must gain the trust of safety officials before launching fully autonomous services.

"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.

Many prospective buyers have been turned off by Musk’s foray into right-wing politics, and the competition has ramped up in key markets such as Europe and China.