The battle for self-driving dominance is heating up! Tesla (TSLA) and Waymo, the autonomous division of Alphabet (GOOGL), are in a head-to-head race for a market expected to be worth hundreds of billions, maybe even trillions! Both companies are viewing robotaxis as a gamechanger in the way we get around. Exhibiting great promise, self-driving cars might not only save lives by reducing accidents but could even turn a profit for their owners over time.
But here’s the rub: the big question remains whether these technological marvels can function effectively on a large scale. Now it’s crucial to see how Tesla and Waymo measure up as competition heats up.
Waymo Stepping Up Its Game
Waymo, backed by Alphabet, has been starting to make significant strides. It’s now offering fully driverless rides across five U.S. cities and just recently kicked off operations in Miami. Over the next few weeks, it’s getting ready to roll out services in Dallas, Houston, San Antonio, and Orlando, with a more extensive public launch slated for 2026.
Additionally, Waymo is already providing rides along freeways in the Bay Area, Los Angeles, and Phoenix, making strides in handling high-speed and complex highway environments. With a fleet of over 2,500 self-driving vehicles in play, they’re notching up more than 10 million paid rides.
This momentum means Waymo is transitioning from pilot tests to scaling its operations, putting additional pressure on competitors as the race to robotaxis accelerates.
Tesla’s Unique Spin on Robotaxis
On the flip side, Tesla seems to be following a different path. They’re looking to transform their existing lineup into autonomous robotaxis through ongoing software updates, while also laying a groundwork for a dedicated fleet for future rollouts.
They recently got the green light in Arizona for a ride-hailing service, marking a crucial stride towards practical use. Plus, they’re gearing up to extend their robotaxi initiative to 8-10 U.S. cities by 2025, powered by their Full Self-Driving tech (FSD). Shortly, Tesla plans to add over 1,000 additional robotaxis in Texas and the Bay Area.
Elon Musk has mentioned that the ultimate aim is to phase out safety drivers over time, drawing Tesla closer to achieving a completely driverless service. However, this endeavor is still in its infancy compared to Waymo, revealing how Tesla’s tech isn’t quite ready to go without a safety net.
Current Stock Performance: Who’s Ahead?
Based on the TipRanks Stock Comparison Tool, a quick glance shows Alphabet holding a stronger position for now. It has a Strong Buy rating and is targeted to see about 4.12% growth in its price. On the flip side, Tesla is leaning towards a Hold rating, and predictions suggest a possible slight dip of 1.97%.
With a Smart Score of “Perfect 10,” and a considerably lower P/E ratio than Tesla, Alphabet appears to be the more appealing option for investors searching for stability and value in the long run.
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