Tesla has obtained a ride-hailing permit in Arizona in the final step required to launch its robotaxi service

Tesla received a passenger-carrying permit this week from Arizona regulators, opening the door for the automaker to start operating a robotaxi service in the state.

An Arizona Department of Transportation (ADOT) spokesperson told TechCrunch that the automaker applied for a permit from the Transportation Network Corporation (TNC) on November 13. Tesla has met the requirements to operate as a TNC and has been permitted as of November 17, according to ADOT.

This permit is the final regulatory step to launch a robotaxi service in Arizona, a state that has become a center for testing and developing autonomous vehicle technology. Waymo, the Alphabet-owned self-driving company and the dominant provider of robotaxis in the United States, has operated service in the Phoenix area since 2018. Today, Waymo robotaxis cover a 315-square-mile service area in the greater Phoenix metro area.

Under Arizona law, companies apply and then follow a self-certification process to test self-driving vehicles with or without a driver. But this does not allow the company to operate a robo-taxi service that charges fees for rides. Any company wishing to operate a passenger transportation service, whether driven by a human or a robot, must apply for a permit from the transportation network company.

In June, Tesla approached the Arizona Department of Transportation about autonomous vehicle ride-sharing services to begin the certification process. The company expressed interest in operating within the Phoenix metro area, a spokesperson told TechCrunch at the time.

Tesla later applied for both test/operation of self-driving vehicles with a driver and test/operation without a driver. An ADOT spokesperson confirmed that Tesla went through a self-certification process in Arizona in September to test self-driving vehicles.

Arizona is among several states targeted by Tesla CEO Elon Musk for the company’s robotaxi service.

In June, Tesla launched a limited robotaxi service in South Austin. And while the service has grown, the company still has a human safety operator sitting in the passenger seat.

Tesla also launched a fake ride-hailing service in California, even though it lacks the proper permits to operate a commercial robotaxi service in the state. Instead, the company, which has a permit to operate a rental service, uses employees driving Tesla Model Y cars equipped with an advanced driving assistance system, known as Full Self-Driving Supervised, to transport passengers.