Uber Defies California Demand over Autonomous Car Tests

Uber Technologies Inc. has refused to stop testing self-driving cars on public streets in California after the state ordered it to stop until it is issued a license.

Uber contends that a permit isn’t necessary because its test vehicles will always have a driver on board who is ready to take control. The firm argues that its cars are no different in that regard than the electric vehicles sold by Tesla Motors Inc.

Tesla’s cars are equipped with a semi-autonomous “Autopilot” self-driving system than enables the vehicle to drive itself under certain conditions. The operator is expected to be ready at all times to regain control of the car, whose self-driving technology doesn't need a special state permit. California says it doesn’t consider the Tesla vehicles autonomous.

On Friday the state attorney general threatened to seek a court order blocking the Uber tests. A permit costs $150 for 10 test vehicles and $50 for each additional 10 cars. Companies are required to cover insurance costs and must report any collisions involving their self-driving vehicles.