Tesla’s manufacturing prowess could give it a leg up in the race to deploy robotaxis, according to Ark Invest analyst Tasha Keeney. Keeney, who recently experienced a ride in a Waymo car in Los Angeles, noted that while Waymo is making strides, its scaling efforts are hampered by a smaller fleet and ongoing technical challenges, leading to longer wait times for riders.
Keeney argues that Tesla’s vertically integrated approach, which encompasses vehicle manufacturing, could allow it to scale its robotaxi network much faster. By leveraging its existing fleet and engaging with customers, Tesla can rapidly expand its robotaxi operations. Additionally, the affordability of Tesla’s Model 3, starting at $40,000, contrasts sharply with Waymo’s rumored $100,000 starting price for its robotaxis. This cost discrepancy could significantly impact capital investment and initial profitability for Waymo, though the company’s sixth-generation hardware introduced this week aims to address costs.
Tesla CEO Elon Musk, known for his bold predictions, has stated that Tesla could deliver a fully driverless experience by the end of next year. He remains confident in Tesla’s ability to achieve true autonomy, comparing self-driving cars to elevators. Musk’s comments suggest that Tesla is aiming for rapid progress in autonomous driving technology.
Waymo, on the other hand, continues to expand its operations in multiple cities, including San Francisco and Austin. The company received a $5 billion investment from its parent company Alphabet to support its scaling efforts. However, Waymo’s reliance on a smaller fleet and higher vehicle costs could pose challenges for rapid expansion compared to Tesla’s vertically integrated approach.
The ongoing development of robotaxi technology has significant implications for the future of transportation. Both Tesla and Waymo are making progress in this field, but the competition is heating up. The upcoming unveiling of Tesla’s dedicated robotaxi product on October 10 will be a key milestone in the race to deliver a fully autonomous ride-hailing experience.
