The race for autonomous driving is heating up, with Tesla (TSLA) and Waymo, the self-driving division of Alphabet (GOOGL), moving quickly to compete for a market that could be worth hundreds of billions, if not trillions, of dollars. Both companies see robotaxis as the next major evolution in transportation. Some industry watchers think self-driving cars could make money for owners instead of losing value over time and may help cut accidents.
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The promise is huge, but the real challenge is whether the technology can reach a level where it works reliably at scale. Now the question is how Tesla and Waymo stack up as the competition intensifies.
Waymo Moves Ahead in the Race
Alphabet’s Waymo has been expanding its operations steadily. The company now offers fully driverless rides in five U.S. cities, and it launched operations in Miami on November 18, 2025. In the coming weeks, it will begin services in Dallas, Houston, San Antonio, and Orlando, ahead of a full public rollout in 2026.
In addition, Waymo has begun offering rides on freeways in the Bay Area, Los Angeles, and Phoenix, including a full San Jose Peninsula corridor, as the company works to handle high-speed dynamics and complex highway driving. The company now reports a fleet of more than 2,500 autonomous vehicles in service, and it has completed over 10 million paid rides.
These steps show that Waymo is moving past small tests and starting to scale its service. The progress also puts more pressure on rivals as the race for robotaxis grows.
Tesla Pushes Forward With Robotaxi Strategy
Meanwhile, Tesla is taking a slightly different approach. The company aims to turn its existing fleet into autonomous robotaxis through software updates, while also building a dedicated service fleet as it prepares for wider deployment.
Recently, Tesla received a permit in Arizona to operate a ride-hailing service, marking an early step toward commercial use. The company also plans to expand its robotaxi program into 8 to 10 U.S. cities by the end of 2025, using its Full Self-Driving system (FSD). In addition, Tesla said it will add more than 1,000 robotaxis across Texas and the Bay Area in the near term.
Looking ahead, CEO Elon Musk has said the goal is to remove safety drivers over time, which would move Tesla closer to a fully driverless service. However, the program is still in the early stage compared to Waymo, and the need for safety monitors shows the technology is not yet ready to operate on its own.
Which Stock Looks Better Right Now?
Using the TipRanks Stock Comparison Tool, Alphabet looks stronger at the moment. The stock holds a Strong Buy rating, and the average price target points to about 4.12% upside from current levels. On the other hand, Tesla carries a Hold rating and its price target suggests a slight downside of around 1.97%.
Alphabet also scores a Smart Score of “Perfect 10” and trades at a much lower P/E ratio than Tesla, which may make it more attractive for investors looking for value and long-term stability.
