Tesla has rolled out a ride-hailing service in San Francisco, but the lack of a permit to allow it to accept fares from passengers means that it cant yet call it a robotaxi service.

The first Tesla Model 3 and Model Y cars hit the streets of San Francisco on Thursday, just over a month after the launch of its robotaxi service in Austin, Texas, where it does have the proper permits.

Recommended Videos A video uploaded by a passenger to X shows a Tesla employee with his hands touching the steering wheel as the car drove along in FSD (Full self-driving) mode, Teslas advanced driver-assist feature.

Related: Best new movies to stream on Netflix, Hulu, Prime Video, HBO Max, and more The California Public Utilities Commission (CPUC) stated recently that at the current time, Tesla has to have a safety driver behind the wheel for testing, as well as to transport members of the public, Reuters reported.

The regulator added that the automaker has to undertake a pilot phase that imposes no charges on passengers before applying for full-autonomous permits, a process that Reuters says took competitors such as Waymo years to complete.

Tesla is inviting employees friends and family, and select members of the public, to participate in the early stage of the service.

In June, the automaker launched its first robotaxi service in Austin, with a safety monitor sitting in the front passenger seat, not the drivers seat. And unlike the Teslas ride-hailing cars in San Francisco, Austins Model Y vehicles have robotaxi branding on the side.

Musk said recently that Tesla is planning to get permits to launch its robotaxi service in a number of states, including not only California but also Nevada, Arizona, and Florida.

In California, strict regulations have prevented Musk from experiencing the kind of rapid robotaxi rollout that was possible in Texas. Essentially, the San Francisco launch appears to be a strategic move by Tesla to maintain momentum in the autonomous-vehicle sector.