This Business Could Crush Elon Musk's Dream Tesla Robotaxi – Motley's Fool



[ad_1]

You're here (NASDAQ: TSLA) Chief Executive Officer Elon Musk made a big claim at the company's Independence Day in April, calling on investors to expect one million stand-alone taxis on the road next year. It's really ambitious, even by Musk standards.

Tesla was supposed to put a fully autonomous vehicle on the road by 2017. She did not respect this deadline and do not be surprised not to see her too. Musk's strategy of putting as many robotaxis on the roads as eighteen months will come up against regulatory hurdles, as well as competition from Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) The Waymo subsidiary has taken slow but steady steps to develop its own carpooling activities.

Person reading a book inside of an autonomous car.

Image Source: Getty Images

Waymo progresses while the Tesla information circus continues

Alphabet's autonomous driving division, Waymo, has been a leader in the field of autonomous driving. His cars have traveled millions of miles on the road, leaving others far behind.

It was therefore logical that Waymo commercially launched its autonomous driving service in the Phoenix metropolitan area at the end of last year. However, the commercial launch of the Waymo One self-driving taxi service had certain limitations, including the requirement to present a test pilot and limit its operational capabilities to a fixed radius.

Despite a massive technological advance over rivals, Waymo decided to play safety early. Musk's belief that Teslas will soon start driving by itself next year – helping homeowners rent up to $ 30,000 a year by renting their vehicles – seems self-evident.

The NHTSA (National Highway Traffic Safety Administration) indicates that fully automated security features can only be used in cars after 2025. This makes sense, since autonomous cars will have to undergo numerous tests before they are deemed fit. to drive independently. lives will be at stake when cars start driving alone.

But Tesla has not yet tested its autonomous vehicles like Waymo did. And Tesla cars also have no flawless safety record: they have been involved in fatal crashes, even with the autopilot system enabled.

That's why expecting Tesla to get green light from regulators to get a million robotaxis on the road next year is probably nothing more than a dream chimerical. But we can not say as much about Waymo: the Alphabet subsidiary now seems to be on track to develop its robotaxi business thanks to its latest partnership.

Alphabet takes a step closer to monetizing its standalone technology

Waymo has expanded its driverless taxi program in Phoenix by partnering with Lyft. Carpool company customers can request a Waymo self-drive car using the Lyft app, although there are safety drivers behind the wheels of these cars.

Service is limited at this time, as only 10 Waymo vehicles are available to Lyft customers in some Phoenix area cities. Despite its limited scope, it is a big step forward as it shows us the future of the auto industry.

One of the biggest challenges that Lyft and Uber the face keeps their drivers happy. Uber recently reduced driver pay by 25% and blocked their accounts. Since Uber would lose an average of 58 cents per trip, he is probably forced to take steps to reduce his costs.

Reducing drivers' wages is one way for these carpool companies to achieve this. But such an approach is likely to run into opposition, as shown by the recent drivers' strike.

This is where Waymo comes into play with its autonomous taxis. It can be associated with more carpool companies, by providing self-driving vehicles that can drive on their own and remove the human element from the equation.

It is not surprising then that Waymo is now considering a factory in Detroit to build autonomous cars, which could be considered a precursor to the wider launch of its robotaxi service.

Tesla, meanwhile, has a much simpler plan: send a software update to its cars to equip them with autonomous driving capabilities. Musk thinks he can leap ahead of others in the technology of autonomous driving. But do not be surprised if Waymo, with its slow and steady approach, takes the risk of taking risks by forming links with the very companies that Musk plans to compete against.

[ad_2]

Source link