Alphabet’s (GOOGL) shares extended their previous day’s losses during Tuesday’s pre-market session as Waymo, its self-driving unit, issued another recall of its robotaxis. The pullback puts the spotlight on the driverless vehicle unit that is pushing to maintain its lead over rivals Tesla (TSLA) and Uber (UBER).
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Waymo Makes Another Recall
According to the National Highway Traffic Safety Administration (NHTSA), Waymo is recalling 3,791 of its robotaxis due to a software issue related to the vehicle’s self-driving mechanism. The software glitch means that cars might mistakenly drive into areas covered by floodwater instead of avoiding them.
The issue affects Waymo’s vehicles equipped with the 5th and 6th generations of the robotaxi company’s Automated Driving Systems, the auto safety regulator said.
In response, Waymo is developing a comprehensive fix for the problem. In the meantime, the autonomous driving company has updated its maps and expanded the breadth of weather-related conditions its vehicles can handle, the regulator said.
Waymo Battles Setback in Self-Driving Race
The new recall marks a new setback for Waymo, which is already facing an investigation from the NHTSA into a January 23 minor accident in Santa Monica, California. Waymo’s robotaxi struck a child who was running across the road behind a double-parked sport utility vehicle toward a nearby elementary school.
In November, Waymo was also forced to recall 3,000 of its vehicles to implement a software update following reports its vehicles were driving past school buses instead of stopping behind them.
The developments come as Waymo has significantly outperformed its rival in terms of robotaxi rollout. Based on the most recent data, the company now manages about half a million paid robotaxi trips each week across 10 American cities. This is even as Waymo has expanded to its 11th U.S. city, Nashville, Tennessee.
Is Google Stock a Good Stock to Buy?
On Wall Street, Alphabet’s shares continue to boast a Strong Buy consensus rating from analysts. This is based on 28 Buys and four Holds issued by 32 analysts over the past three months.
In addition, the average GOOGL price target of $428.09 implies about 10% upside potential.
