Tesla Faces Robotaxi Competition as Uber and Waymo Expand Autonomous Networks
Uber and Waymo have launched their autonomous ride-hailing service in Atlanta, marking another milestone in the robotaxi race. The partnership allows passengers to choose between driverless or traditional rides with a single click. Uber's stock surged 7.5% on the announcement, while Tesla shares dipped 2.4%.
Tesla's own robotaxi service, launched recently in Austin, Texas, is experiencing growing pains. Social media videos show Model Y taxis exhibiting erratic behavior—wrong-way driving, sudden braking, and speeding—prompting scrutiny from the NHTSA. The incidents highlight the technological hurdles facing autonomous vehicle adoption.
The expansion of Waymo's white-label service through Uber's platform creates a formidable challenge for Tesla. Unlike its competitors, Tesla is pursuing a vertically integrated approach—developing both the vehicles and the ride-hailing network. This strategy may face scalability tests as rivals leverage partnerships to accelerate deployment.