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China-based autonomous driving startup WeRide has received an approval from California to test its driverless vehicles with passengers, according to a permit from the state's utility regulator.
The move comes as the company seeks a valuation of as much as $5 billion from its New York IPO even as the U.S. is set to ban vehicles with China-developed systems, according to people briefed on the matter.
The permit from the California Public Utilities Commission (CPUC) - issued earlier this month for three years - allows WeRide to ferry passengers in test vehicles with a driver and without one.
WeRide will not be allowed to offer rides to the general public and cannot charge any fares.
WeRide has 12 active vehicles and will operate in San Jose and nearby areas, according to the CPUC.
Developing and commercialising robotaxis in the U.S. has been more challenging than expected due to regulatory hurdles, opposition from city agencies, and public outrage.
Alphabet's Waymo, which has about 700 vehicles in its fleet, is the only U.S. firm operating uncrewed robotaxis that collect fares.
General Motors' Cruise division has resumed testing its autonomous vehicles with safety drivers after one of its vehicles struck a pedestrian last year.
WeRide, a company founded in 2017, received permits from California in 2021 to test its driverless vehicles without passengers.
WeRide also operates autonomous vans, buses, and street sweepers, and has driverless permits in Singapore and the United Arab Emirates.
WeRide did not immediately respond to Reuters' requests for additional details.
