Tesla’s plans to operate thousands of driverless taxis in Las Vegas have hit a regulatory hurdle. The Nevada Transportation Authority has approved the company’s robotaxi service for just 10 vehicles, a stark contrast to the 5,000 the company had requested.

The approval, granted on July 27, restricts Tesla’s robotaxis to the Las Vegas Strip corridor for now. The vehicles are also subject to a maximum speed limit of 72 kilometers per hour. Notably, the permit does not extend to picking up passengers from Harry Reid International Airport, despite the airport being part of Tesla’s original application.

Regulators have stipulated that Tesla must seek further state approval for any expansion of its robotaxi fleet or operational area. Additionally, the vehicles must be clearly marked with the words “robo taxi,” and passengers must be informed before their trip that they are boarding a driverless vehicle.

A key condition of the approval is that the vehicles must have “appropriate human supervision” during trips. However, it remains unclear whether this supervision will involve a safety driver inside the vehicle or remote monitoring.

Interestingly, the regulatory approval document does not explain why the fleet was limited to just 10 robotaxis compared to the thousands Tesla had requested.

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