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GM & TSLA Face Roadblocks in Robotaxi Race as Waymo Leads
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With the integration of artificial intelligence and machine learning in advanced driver-assistance systems, robots are finally taking over the wheels. Progress is underway with auto and tech giants racing toward automated mobility. While some companies are making tangible strides, others are encountering fresh financial and technical challenges.
Yesterday, key contenders in the self-driving space — Alphabet (GOOGL - Free Report) , General Motors (GM - Free Report) and Tesla (TSLA - Free Report) — reported their quarterly results, shedding light on their advancements in autonomous vehicle (AV) technology. Alphabet announced increased investment in Waymo, while General Motors’ Cruise indefinitely delayed production of its Origin self-driving shuttle. Meanwhile, Tesla postponed the unveiling of its robotaxi from Aug 8 to Oct 10.
Waymo the Frontrunner
Alphabet's self-driving subsidiary, Waymo, continues to dominate the AV space. The tech giant reaffirmed its commitment to the self-driving future by announcing a new $5 billion investment in Waymo on its second-quarter earnings call. This investment, spread over multiple years, underscores Alphabet's belief in Waymo's potential.
The investment comes as Waymo plans a significant expansion across the San Francisco Peninsula, throughout greater Los Angeles, and in Austin, TX, where commercial robotaxi service is expected to start by the end of the year. Waymo has more than 600 robotaxis operating in Phoenix, San Francisco and Los Angeles, making it the sole self-driving tech company with a significant commercial presence of driverless taxis in the United States.
CEO Sundar Pichai stated on the earnings call that Waymo offers 50,000 weekly paid trips, mainly in San Francisco and Phoenix, and has completed 2 million trips to date. Last month, Waymo opened rides to the public in San Francisco, marking a significant milestone for the company. Testing is also underway in the Bay Area. Waymo is working to access SFO airport rides, holding permits for 24/7 operation in San Francisco, parts of the Peninsula and highways to the airport.
GM's Cruise Hits a Snag
In contrast to Waymo's advancements, General Motors’ autonomous vehicle unit, Cruise, has hit a roadblock. GM announced an indefinite delay in the production of the Origin, a self-driving shuttle designed for use in cities. This decision was disclosed on GM's second-quarter earnings call.
The indefinite suspension of Origin's production aims to lower costs per unit and address regulatory uncertainty due to the product’s unique design, which lacks pedals and a steering wheel. Instead, Cruise will continue using Chevy Bolt as its autonomous-driving platform while the company regroups after an October 2023 crash in San Francisco that caused a months-long halt in their nationwide operations.
Despite the setback, Cruise began testing its self-driving system with human safety drivers on public roads in Phoenix on May 13. This marked the first time Cruise had tested its autonomous-driving tech since the self-imposed shutdown following the crash. The company is slowly regaining its footing after the hazardous incident. Although it might return to the Origin in the future, GM is focusing its efforts on Bolt for now.
Tesla’s Delays
Tesla has also faced delays in its self-driving ambitions. CEO Elon Musk has repeatedly heralded the dawn of fully autonomous vehicles, promising groundbreaking advancements that are yet to materialize. In 2015, he projected that Tesla cars would achieve full autonomy within three years. The following year, he claimed that a Tesla car would complete a cross-country journey without human intervention by 2017. In 2019, Musk ambitiously forecasted one million robotaxi-ready vehicles by 2020.
To date, Tesla has not delivered a single robotaxi or autonomous vehicle that meets these lofty expectations. Tesla’s Autopilot and Full Self-Driving systems, while impressive, still require driver supervision and accountability.
Yesterday, on its earnings call, Tesla pushed back plans to unveil its CyberCab, a dedicated robotaxi, from Aug 8 to Oct 10. Elon Musk attributed the delay to "an important design change." The Tesla robotaxi and its envisioned "unsupervised" full self-driving software are central to the company's future.
The Competitive Landscape
While Waymo, Cruise, and Tesla are major names in the AV industry, other companies are also making significant progress. For example, Amazon's (AMZN - Free Report) subsidiary Zoox is taking a methodical approach to developing AVs. Founded in 2014, Zoox has not yet commercially launched its custom-built robotaxis, but this is expected to change soon. It plans to start service in Las Vegas by the end of the year.
Meanwhile, Mobileye and Volkswagen are working together to deploy robotaxis. In March, they announced plans to intensify their efforts, including integrating Mobileye's self-driving systems into Volkswagen's ID Buzz vehicles.
In China, search engine giant Baidu (BIDU - Free Report) is expanding its Apollo Go autonomous ride-hailing platform. Operating in over 10 cities, Baidu is the first to offer fully driverless services in Beijing, Wuhan, Shenzhen and Chongqing. The company aims to have a fleet of 1,000 robotaxis in Wuhan by the end of the year, using its sixth-generation robotaxi, which costs less than $30,000 — half the cost of the previous generation. These reduced costs are expected to help Apollo Go become profitable by 2025.
Wrapping Up
The race toward a fully autonomous future is marked by both significant advancements and notable setbacks. Alphabet's Waymo continues to lead the pack with substantial investments and successful deployments, while GM's Cruise and Tesla face challenges that delay their progress. Other players like Zoox, Mobileye, Volkswagen and Baidu are also making strides, contributing to a competitive and evolving landscape in the autonomous vehicle industry. As the technology and regulatory environment continues to develop, the journey toward widespread adoption of self-driving cars remains both exciting and uncertain.
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GM & TSLA Face Roadblocks in Robotaxi Race as Waymo Leads
With the integration of artificial intelligence and machine learning in advanced driver-assistance systems, robots are finally taking over the wheels. Progress is underway with auto and tech giants racing toward automated mobility. While some companies are making tangible strides, others are encountering fresh financial and technical challenges.
Yesterday, key contenders in the self-driving space — Alphabet (GOOGL - Free Report) , General Motors (GM - Free Report) and Tesla (TSLA - Free Report) — reported their quarterly results, shedding light on their advancements in autonomous vehicle (AV) technology. Alphabet announced increased investment in Waymo, while General Motors’ Cruise indefinitely delayed production of its Origin self-driving shuttle. Meanwhile, Tesla postponed the unveiling of its robotaxi from Aug 8 to Oct 10.
Waymo the Frontrunner
Alphabet's self-driving subsidiary, Waymo, continues to dominate the AV space. The tech giant reaffirmed its commitment to the self-driving future by announcing a new $5 billion investment in Waymo on its second-quarter earnings call. This investment, spread over multiple years, underscores Alphabet's belief in Waymo's potential.
The investment comes as Waymo plans a significant expansion across the San Francisco Peninsula, throughout greater Los Angeles, and in Austin, TX, where commercial robotaxi service is expected to start by the end of the year. Waymo has more than 600 robotaxis operating in Phoenix, San Francisco and Los Angeles, making it the sole self-driving tech company with a significant commercial presence of driverless taxis in the United States.
CEO Sundar Pichai stated on the earnings call that Waymo offers 50,000 weekly paid trips, mainly in San Francisco and Phoenix, and has completed 2 million trips to date. Last month, Waymo opened rides to the public in San Francisco, marking a significant milestone for the company. Testing is also underway in the Bay Area. Waymo is working to access SFO airport rides, holding permits for 24/7 operation in San Francisco, parts of the Peninsula and highways to the airport.
GM's Cruise Hits a Snag
In contrast to Waymo's advancements, General Motors’ autonomous vehicle unit, Cruise, has hit a roadblock. GM announced an indefinite delay in the production of the Origin, a self-driving shuttle designed for use in cities. This decision was disclosed on GM's second-quarter earnings call.
The indefinite suspension of Origin's production aims to lower costs per unit and address regulatory uncertainty due to the product’s unique design, which lacks pedals and a steering wheel. Instead, Cruise will continue using Chevy Bolt as its autonomous-driving platform while the company regroups after an October 2023 crash in San Francisco that caused a months-long halt in their nationwide operations.
Despite the setback, Cruise began testing its self-driving system with human safety drivers on public roads in Phoenix on May 13. This marked the first time Cruise had tested its autonomous-driving tech since the self-imposed shutdown following the crash. The company is slowly regaining its footing after the hazardous incident. Although it might return to the Origin in the future, GM is focusing its efforts on Bolt for now.
Tesla’s Delays
Tesla has also faced delays in its self-driving ambitions. CEO Elon Musk has repeatedly heralded the dawn of fully autonomous vehicles, promising groundbreaking advancements that are yet to materialize. In 2015, he projected that Tesla cars would achieve full autonomy within three years. The following year, he claimed that a Tesla car would complete a cross-country journey without human intervention by 2017. In 2019, Musk ambitiously forecasted one million robotaxi-ready vehicles by 2020.
To date, Tesla has not delivered a single robotaxi or autonomous vehicle that meets these lofty expectations. Tesla’s Autopilot and Full Self-Driving systems, while impressive, still require driver supervision and accountability.
Yesterday, on its earnings call, Tesla pushed back plans to unveil its CyberCab, a dedicated robotaxi, from Aug 8 to Oct 10. Elon Musk attributed the delay to "an important design change." The Tesla robotaxi and its envisioned "unsupervised" full self-driving software are central to the company's future.
The Competitive Landscape
While Waymo, Cruise, and Tesla are major names in the AV industry, other companies are also making significant progress. For example, Amazon's (AMZN - Free Report) subsidiary Zoox is taking a methodical approach to developing AVs. Founded in 2014, Zoox has not yet commercially launched its custom-built robotaxis, but this is expected to change soon. It plans to start service in Las Vegas by the end of the year.
Meanwhile, Mobileye and Volkswagen are working together to deploy robotaxis. In March, they announced plans to intensify their efforts, including integrating Mobileye's self-driving systems into Volkswagen's ID Buzz vehicles.
In China, search engine giant Baidu (BIDU - Free Report) is expanding its Apollo Go autonomous ride-hailing platform. Operating in over 10 cities, Baidu is the first to offer fully driverless services in Beijing, Wuhan, Shenzhen and Chongqing. The company aims to have a fleet of 1,000 robotaxis in Wuhan by the end of the year, using its sixth-generation robotaxi, which costs less than $30,000 — half the cost of the previous generation. These reduced costs are expected to help Apollo Go become profitable by 2025.
Wrapping Up
The race toward a fully autonomous future is marked by both significant advancements and notable setbacks. Alphabet's Waymo continues to lead the pack with substantial investments and successful deployments, while GM's Cruise and Tesla face challenges that delay their progress. Other players like Zoox, Mobileye, Volkswagen and Baidu are also making strides, contributing to a competitive and evolving landscape in the autonomous vehicle industry. As the technology and regulatory environment continues to develop, the journey toward widespread adoption of self-driving cars remains both exciting and uncertain.