Tesla Is Already Losing the Robotaxi Wars

Summary

The video discusses the future of autonomous vehicle robo-taxis, comparing Tesla’s ambitious yet untested plans with the current market leaders, Cruise (owned by GM) and Waymo (owned by Alphabet). These companies already have operational robo-taxis in several U.S. cities and are expanding rapidly, while Tesla lags behind with no fully autonomous vehicles in testing. The video emphasizes that Cruise and Waymo are safer, proven, and more practical investment options compared to Tesla, which faces regulatory challenges and delayed progress in the robo-taxi industry.

Takeaways

• 🚕 Tesla is expected to announce an autonomous Robo taxi product on October 10th, but competitors are already ahead in the market.
• 🤖 Uber has partnerships with Cruise (a GM subsidiary) and Waymo (owned by Alphabet), both of which have operational autonomous vehicles today.
• 🌍 Waymo has the most autonomous miles driven and is operational in cities like Phoenix, San Francisco, Los Angeles, and Austin.
• 🛣️ Waymo's autonomous service covers a large area in Phoenix, including 315 square miles of the metro area, and is expanding in other major cities.
• 🚗 Cruise, owned by General Motors, is also operational with modified Chevy Bolt vehicles and is expanding to more cities like Phoenix, Dallas, and Houston.
• 🛠️ Tesla’s autonomous driving system (FSD) is only at Level 2, while competitors are deploying higher-level systems that don’t require drivers.
• 🚨 Cruise faced setbacks in San Francisco due to an incident in 2023, but it’s relaunching and testing safety measures in key cities.
• 📱 Both Waymo and Cruise have partnerships with Uber, allowing customers to book rides through the Uber app in cities where they operate.
• ⏳ Tesla has not begun testing fully autonomous driving systems in key states like California and Texas, which means they are years behind competitors.
• 💡 Investors might find better opportunities in General Motors (Cruise) and Alphabet (Waymo) compared to Tesla, as those companies are further along in the Robo taxi business.

Q & A

What is Tesla expected to announce on October 10th?

Tesla is expected to announce a Robo-taxi product, which is an autonomous vehicle concept, on October 10th.

How are competitors like Cruise and Waymo ahead of Tesla in the Robo-taxi market?

Cruise and Waymo are already deploying fully autonomous vehicles (Robo-taxis) in multiple cities in the U.S., while Tesla's autonomous driving technology is still in development and hasn't been tested in public markets at the same level.

What level of autonomous driving is Tesla currently working on?

Tesla is attempting to move from a Level 2 autonomous driving system (which requires driver supervision) to a Level 5 system, which would be fully autonomous and capable of driving anywhere without human intervention.

Which companies are currently partnering with Uber for Robo-taxi services?

Uber is partnering with both Cruise (owned by General Motors) and Waymo (owned by Alphabet) to provide autonomous vehicle services on their platform.

What cities are Waymo’s Robo-taxis currently operational in?

Waymo's Robo-taxis are operational in Phoenix, San Francisco, Los Angeles, and Austin.

Why is Cruise considered a strong competitor in the Robo-taxi space?

Cruise is owned by General Motors and is actively deploying autonomous vehicles in multiple cities. They have partnered with Uber, which expands their potential customer base significantly.

What challenges is Tesla facing in its Robo-taxi development?

Tesla is not currently testing fully autonomous vehicles in key states like California and Texas, which are critical for deploying its Robo-taxi network. Tesla also faces regulatory hurdles and hasn't yet proven its 'vision-only' autonomous driving model.

What incident caused Cruise to temporarily pull its vehicles off the road?

In October 2023, an incident in San Francisco led Cruise to temporarily halt its autonomous vehicle operations to reassess safety protocols and ensure compliance with regulations.

What is the regulatory status of Tesla's autonomous vehicle testing?

Tesla is not testing fully autonomous vehicles (Level 3, 4, or 5) in key U.S. states like California or Texas, where other companies like Waymo and Cruise are actively testing and deploying their Robo-taxis.

Why might Waymo and Cruise be better investments than Tesla in the autonomous vehicle space?

Waymo and Cruise are already operational, collecting data, and scaling their autonomous vehicle networks in major U.S. cities. Tesla, meanwhile, is years away from deploying a fully autonomous Robo-taxi service, making Waymo and Cruise less risky and more proven options.