Key Points
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Both Tesla and Alphabet are heavily invested in autonomous driving technology.
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Tesla is manufacturing its own robotaxis, while Alphabet’s Waymo is outsourcing vehicle production.
Tesla (NASDAQ: TSLA) has launched its robotaxi service in Houston, Dallas, and Austin, Texas, with plans to expand to five additional cities. Conversely, Alphabet (NASDAQ: GOOG, GOOGL)’s Waymo is operational in 10 cities across six states, highlighting a significant lead in reach. Experts estimate the global robotaxi market could be worth between $5 trillion and $10 trillion by 2030.
In 2023, Waymo plans to expand its service to over 20 cities, while Tesla aspires to grow its footprint to 10 cities. Waymo’s self-driving vans have production costs around $125,000, whereas Tesla aims to produce its Cybercabs for less than $30,000, potentially reducing costs below $20,000 in the long term. This vertical integration gives Tesla a cost advantage, which could lead to lower operational expenses compared to Waymo.
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