Tesla is eyeing the future, ready to shake up the streets of Austin, Texas, with its new line of self-driving cars, seeking to challenge Waymo’s dominance in the robotaxi industry. During 2024’s fourth quarter earnings call, Tesla CEO Elon Musk announced that the company would introduce the new fleet by mid-June 2025. The service will allow users to order a robotaxi, similar to how they would use an Uber.
Self-driving cars are ‘critical’ to Tesla’s future
While Tesla’s fourth quarter profits didn’t meet expectations, Musk believes these self-driving vehicles are key to sustaining the company’s future. Analysts agreed, noting that Tesla’s software and the prospects of autonomous technology are helping maintain strong profits.
Point phone camera here
Although Texas is the first stop for Tesla’s robotaxi service, the company plans to expand to California and other U.S. cities by the end of the year.
Competition with Waymo
Tesla’s new fleet will directly compete with Waymo, which already operates robotaxis in California. Tesla’s entry into the market will add pressure on Waymo, especially in cities where it operates, such as Los Angeles and San Francisco.
This week, Waymo, the Alphabet-owned company, announced it would expand its autonomous vehicles to 10 more cities in 2025, including Las Vegas and San Diego. Waymo is already operational in Phoenix, with plans to enter Atlanta and Miami soon.
Autonomous vehicle industry growth
According to data from Research and Markets, the autonomous vehicle industry is gaining momentum, with an estimated market growth of 29% annually. Both Tesla and Waymo are emerging as key players in the growing industry.
Get up to speed on the stories leading the day every weekday morning. Sign up for the newsletter today!
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
As autonomous vehicles grow in popularity, lawmakers in states like Virginia, California and Maryland are moving to regulate them. Current legislative efforts focus on liability in accidents, weight limits and manufacturer responsibilities.
In addition to its robotaxi fleet, Tesla is planning to launch its Cybercab model, another autonomous vehicle. However, this model does not have a steering wheel. Production is expected to begin in 2026.
[Jack Aylmer]
TESLA IS EYEING THE FUTURE—READY TO SHAKE UP THE STREETS OF AUSTIN WITH THEIR NEW LINE OF SELF-DRIVING CARS, TAKING AIM AT WAYMO’S DOMINANCE IN THE ROBOTAXI INDUSTRY.
BY THE MIDDLE OF JUNE–CEO ELON MUSK SAYS THE CITY OF AUSTIN WILL SEE A NEW FLEET OF FULL SELF DRIVING CARS.
SIMILAR TO ORDERING AN UBER–PEOPLE CAN INSTEAD OPT FOR A ROBOTAXI THROUGH TESLA.
EVEN THOUGH Q4 PROFITS DIDN’T HIT EXPECTATIONS, MUSK BELIEVES THESE SELF-DRIVING CARS ARE THE KEY TO TESLA’S FUTURE. ANALYSTS AGREE—THE SOFTWARE AND FUTURE PROSPECT IS KEEPING COMPANY PROFITS HEALTHY.
WHILE TEXAS IS THE FIRST STOP ON THE MAP, CALIFORNIA AND OTHER U-S CITIES COULD SOON SEE TESLA’S ROBOTAXI’S BY THE END OF THE YEAR.
THE NEW FLEET WILL CROSS PATHS WITH THE COMPETITOR–WAYMO.
THIS WEEK, THE ALPHABET-OWNED COMPANY ANNOUNCED IT WILL EXPAND ITS AUTONOMOUS VEHICLES TO TEN MORE CITIES IN 2025, ONLY DISCLOSING TWO: LAS VEGAS AND SAN DIEGO.
SO LET’S BREAK IT DOWN:
WAYMO IS ALREADY OPERATING IN CALIFORNIA—WHERE TESLA IS HEADING—WITH ROBOTAXIS IN LOS ANGELES AND SAN FRANCISCO.
THEN THERE’S AUSTIN, WHERE TESLA WILL ROLL OUT ITS FIRST ROBOTAXIS.
AND LET’S NOT FORGET WAYMO’S PRESENCE IN PHOENIX, WITH ATLANTA AND MIAMI COMING SOON.
DATA FROM RESEARCH AND MARKETS SHOW THE AUTONOMOUS VEHICLE INDUSTRY IS GAINING TRACTION, WITH AN EXPECTED MARKET GROWTH OF 29% ANNUALLY—WITH BOTH WAYMO AND TESLA EMERGING AS KEY PLAYERS.
AS AUTONOMOUS VEHICLES GAIN POPULARITY, LAWMAKERS IN STATES LIKE VIRGINIA, CALIFORNIA, AND MARYLAND ARE MOVING TO REGULATE THEM—FOCUSING ON LIABILITY IN ACCIDENTS, WEIGHT LIMITS AND MANUFACTURER RESPONSIBILITIES.
TESLA IS ALSO PLANNING TO LAUNCH ITS CYBERCAB–ANOTHER ROBOTAXI MODEL–THIS ONE BUILT WITHOUT A STEERING WHEEL.
PRODUCTION IS EXPECTED TO START NEXT YEAR.
FOR STRAIGHT ARROW NEWS, I’M JACK AYLMER
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
