The taxi service will initially operate with Tesla employee drivers only, use current-model vehicles, and won’t allow for driverless rides.

The limited regulatory approval is an early step toward Elon Musk’s goal of offering a Tesla self-driving taxi service.

As protests rage at Tesla dealerships throughout the Bay Area and the country, Elon Musk is quietly expanding the company’s footprint — and inching closer to a ride-hail service that would compete with big players like Uber and Waymo.