Alphabet’s (GOOGL) autonomous ride-hailing service Waymo is racing ahead successfully as competition from Tesla’s (TSLA) robotaxi service becomes real. Yesterday, Waymo announced that it had driven more than 100 million miles without any human assistance, marking a significant milestone. The company has doubled its mileage in about six months, up from roughly 50 million miles at the end of 2024.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Meanwhile, rival Tesla’s robotaxi service is expanding its service area in Austin less than a month after its launch on June 22. Tesla currently operates around 12 Model Y SUVs in Austin, and CEO Elon Musk has plans to launch in several U.S. cities by the end of this year.
The autonomous vehicle (AV) sector is highly regulated, with companies facing significantly higher costs and often encountering federal probes and recalls. General Motors (GM) Cruise shut down owing to these challenges after a fatal crash involving one of its robotaxis in 2023. Amazon’s (AMZN) Zoox is also testing its AVs, which reportedly comes without a steering wheel and pedals, and has plans to launch commercially in Las Vegas this year.
Waymo Is Leading the Robotaxi Market in the U.S.
Waymo has been successfully operating its robotaxi service since 2020 and was the only operator in the U.S. until Tesla’s arrival. Waymo operates about 1,500 self-driving vehicles in San Francisco, Los Angeles, Phoenix, Austin, and Atlanta. Commenting on the milestone, Waymo’s chief product officer, Saswat Panigrahi, said, “Reaching 100 million fully autonomous miles represents years of methodical progress now accelerating into rapid, responsible scaling.”
Every new city brings new challenges, and Waymo has years of experience navigating these obstacles. The company plans to expand into Washington, D.C. next year and has also applied for a license to operate in New York, although its robotaxis in Manhattan will have a trained specialist behind the wheel. Waymo covers more than two million miles autonomously per week, a feat Tesla will take years to achieve.
Tesla’s Robotaxis Are Gaining Momentum Despite Initial Hiccups
Tesla has expanded its robotaxi service area in Austin, shutting down critics who doubted Musk’s ability to realize this project. Despite the comical appearance of the expanded coverage, the fact remains that Tesla is able to grow its service area because it has proven its AV capabilities and is a serious contender to rival Waymo. Tesla’s service area now spans 42 square miles in Austin, including the University of Texas, which has over 53,000 students, exceeding Waymo’s 37-square-mile coverage.
On Monday, Tesla rolled out a second update to its robotaxi app, which includes the enhanced service area, walking directions for both pickup and dropoff, closing times for dropoff destinations, and the ability to edit destinations even after booking a ride.
The company also increased ride prices from $4.20 to $6.90 per ride. Tesla has applied for robotaxi permits in Arizona and California, aiming to launch commercially in those cities in the coming weeks or months.
Alphabet vs. Tesla: Which Is the Better Tech Stock?
Based on TipRanks’ Stock Comparison Tool, Wall Street is currently more confident about Alphabet’s stock outlook than Tesla’s. GOOGL stock has a “Strong Buy” consensus rating, with an 11.1% upside potential from current levels.
