Tesla Inc. is aiming its driverless taxis for the San Francisco Bay area as the carmaker plots an expansion on the heels of last month’s limited rollout in Austin.

Tesla has told California Department of Motor Vehicles officials that it plans to take a phased approach to operating in the state, starting with giving employees pre-arranged rides using a safety

San Francisco is likely to prove a more challenging area for Tesla’s self-driving systems. The city is significantly more densely populated and has more challenging roads, largely due to its extreme topography and steep streets.