Waymo, Alphabet’s (GOOGL) self-driving unit, is recalling 1,212 autonomous vehicles after a software issue caused some cars to collide with roadway barriers. The issue affected vehicles running on Waymo’s older fifth-generation automated driving system (ADS) software.
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The company acted quickly, rolling out a software update to correct the issue. The update ensures that vehicles better recognize obstacles and adjust their responses. Further, Waymo noted that its latest sixth-generation ADS software eliminates the problem.
While no injuries were reported, the incidents raised concerns about autonomous vehicle safety and the reliability of AI-driven navigation.
Waymo’s Past Recalls
Waymo has faced multiple recalls in recent years, mostly due to software issues affecting its self-driving vehicles. Last year, in June, the company recalled over 670 vehicles after one struck a wooden utility pole in Phoenix, Arizona. This recall followed an NHTSA investigation into reports of Waymo’s robotaxis violating traffic laws or exhibiting unexpected behavior.
In 2023, the company issued a voluntary recall after two of its self-driving vehicles collided with a towed vehicle in Phoenix. The issue stemmed from a software flaw that caused the cars to misinterpret the movement of the towed truck, leading to minor collisions.
While recalls can shake confidence in self-driving technology, they also show that fixing problems helps make them better over time. Importantly, Waymo is one of the most advanced in this space. Its proven autonomous technology, fully driverless robotaxis in Phoenix, San Francisco, and Los Angeles, and strategic partnerships with Uber (UBER) and Lyft (LYFT), keep it well-poised for growth.
Is Google a Buy, Hold, or Sell?
Turning to Wall Street, GOOGL stock has a Moderate Buy consensus rating based on 28 Buys and nine Holds assigned in the last three months. At $197.69, the average Alphabet price target implies a 23.92% upside potential.
