Waymo Halts Operations after Self-Driving Cars Set Ablaze in LA Protests – What It Means for Alphabet Investors

Waymo, Alphabet’s (GOOG) (GOOGL) autonomous driving unit, has temporarily halted operations in downtown Los Angeles after several of its self-driving taxis were damaged during protests. Demonstrations over federal immigration enforcement escalated over the weekend, resulting in incidents where at least five Waymo vehicles were set on fire near the Metropolitan Detention Center.

What began as peaceful protests turned into clashes between demonstrators and law enforcement. Reports indicate that some protesters slashed tires, broke windows, and spray-painted slogans on Waymo vehicles before setting them on fire. In some cases, individuals used makeshift flamethrowers and threw electric scooters into the burning vehicles, intensifying the flames. Thick black smoke was visible over the downtown area.

Waymo’s Vehicles Were Sitting Ducks

Emergency responders arrived to contain the fires, but the lithium-ion batteries in Waymo’s electric vehicles posed additional risks. Waymo stated that it does not believe its vehicles were specifically targeted, but acknowledges their presence during a major demonstration made them vulnerable. In response, the company has removed its fleet from downtown LA and suspended service in affected areas while continuing operations elsewhere.

Each Waymo vehicle costs an estimated $150,000 to $200,000, meaning losses from the damaged cars could total between $750,000 and $1 million. Beyond financial concerns, the incident highlights broader tensions surrounding autonomous vehicles. Waymo has previously faced criticism from labor advocates and safety groups who argue that self-driving taxis impact jobs and create potential risks in urban environments. Protests against automation have taken place in several cities, including San Francisco, where demonstrators have expressed concerns about the societal effects of autonomous technology.

While Waymo continues expanding in cities like San Francisco and Phoenix, incidents like this may prompt regulators to reconsider the role of autonomous vehicles in dense metropolitan areas. Investors monitoring Alphabet may be assessing how public sentiment, potential delays, or new regulations could impact Waymo’s long-term growth strategy.

Is GOOG Stock a Buy?

As Waymo is owned by Alphabet, we examine how The Street’s analysts rate GOOG stock. No surprises there, as the stock boasts a Strong Buy rating, with an average GOOG stock price target of $201.14. This implies a 13.24Waymo Halts Operations After Self-Driving Cars Set Ablaze in LA Protests—What It Means for Alphabet Investors% upside.

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