Wells Fargo Backs Google’s Waymo Ahead of Tesla Robotaxi Launch

Tech giant Alphabet’s (GOOGL) self-driving project Waymo has gotten backing from Wells Fargo ahead of Tesla’s (TSLA) much-anticipated robotaxi debut. Analysts at Wells Fargo project that Waymo could account for up to 10% of all U.S. rideshare trips by 2030. The prediction underscores the growing competition in the autonomous mobility space and signals strong long-term confidence in Waymo’s technology and rollout capabilities.

Google’s Waymo Races Ahead in Robotaxi Wars

Wells Fargo projects that Waymo could scale its autonomous ride-hailing business from 18 million rides in 2025 to a staggering 465 million by 2030. This growth is expected to be fueled by a rapid geographic expansion, increasing its coverage from just 9% of U.S. rideshare demand now to 57% by the end of the decade.

Currently active in four cities, Waymo has ambitious plans to enter 17 additional markets, with commercial rollouts anticipated between 2026 and 2027. Just yesterday, the company announced a further expansion of its driverless taxi service areas in Los Angeles, San Francisco, and Silicon Valley, adding more than 80 square miles across the three regions. Notably, Waymo’s commercial driverless service now spans over 250 square miles across California.

According to Wells Fargo analysts led by Ken Gawrelski, consumer adoption in these early markets is ramping up quickly, who noted that Waymo rides in San Francisco and Los Angeles are capturing a meaningful portion of local trips.

Looking ahead, Wells Fargo expects Waymo’s market share to hit 3.5% by 2027 and rise to 10% by 2030. Within its operational zones, the company is forecast to achieve 16% penetration overall and as much as 22% in markets it has already announced.

Tesla’s Robotaxi Launch Sparks Market Buzz

On the other hand, anticipation is building ahead of Tesla’s highly awaited robotaxi launch. Last week, CEO Elon Musk hinted at a launch of Tesla’s robotaxi service in Austin on June 22. Meanwhile, investors are positioning themselves for what could be a game-changing moment for the auto and mobility sectors.

A successful robotaxi debut could reignite investor confidence in Tesla’s strategic shift from affordable EVs to autonomous technology. However, the road ahead remains uncertain, with regulatory challenges and safety concerns still casting a shadow.

Is Google a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and nine Holds assigned in the past three months. The average GOOGL price target of $199.11 per share implies a 13.16% upside potential.

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