Tesla launched ride-hailing in San Francisco's Bay Area on Thursday but did not mention using self driving robotaxis for the service. California has not permitted Tesla to offer robotaxi service, and the limited rollout highlights the regulatory hurdles the company faces as it looks to pivot to robotaxis amid cooling electric vehicle sales.

Notably, California has not yet permitted Tesla ( NASDAQ: TSLA) to offer a full robotaxi service. The California Public Utilities Commission said last week that Tesla was not allowed to "test or transport the public" with or without a driver in a self-driving vehicle.