Tesla vs. Waymo: The Race for Autonomous Vehicle Dominance

As the competition in autonomous driving sharpens, Tesla Inc TSLA and Alphabet Inc’s GOOGL GOOG Waymo are approaching the challenge from two very different angles.

Tesla’s Focus on Data: Challenges Ahead

Elon Musk’s Tesla aims to transform the driving experience with its Full Self-Driving (FSD) technology. Despite a recent robotaxi event disappointing investors, the company counts influential figures like Anthony Levandowski, a co-founder of Waymo, among its supporters. He highlights a significant advantage: data. Tesla collects vast amounts of driving information from millions of vehicles, a resource crucial for improving its software.

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However, Tesla’s stock price has faced challenges. Currently, it is down 11.90% year-to-date and trading below important moving averages such as the five-day, 20-day, and 50-day averages, indicating bearish signals.

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Currently, Tesla stock sits at $218.85, near its eight-day simple moving average (SMA) of $219.41, suggesting selling pressure. The MACD indicator at negative 3.92 hints at potential further declines. Nevertheless, a 200-day moving average at $201.40 offers some hope of a recovery, although overall investor sentiment remains negative.

Read Also: Elon Musk Says Tesla Will Not Buy EV Rival Rivian: ‘Going To Have A Hard Time’

Waymo: Steady and Strategic

Meanwhile, Waymo is quietly advancing its fully autonomous vehicle technology. While Levandowski supports Tesla’s data strategy, he acknowledges that Waymo is recognized for its advanced tests of self-driving cars.

For Alphabet, self-driving technology is not just an experimental project; it represents potential long-term growth that could enhance its already robust core business.

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GOOGL stock has shown strength, trading at $164.07 and above its eight-day and 50-day SMAs. While the RSI reading is neutral at 52.23, the MACD remains positive at 0.58, indicating possible upward momentum. With an 18.8% gain year-to-date, GOOGL is demonstrating stability, despite Waymo’s path to commercial success remaining uncertain.

Conclusion: Who Will Lead the Charge?

Tesla’s focus on accumulating real-world data may accelerate its advancements in autonomous driving. In contrast, Waymo relies on its methodical approach to remain a significant player in the field.

Investors now face a choice: will they support Tesla’s data-centric strategy or opt for Google’s cautious tactics with Waymo?

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