Waymo CEO Criticizes Tesla: The Driverless Future is Coming

Waymo's Strategy and Tesla's Future

Alphabet Inc.'s (NASDAQ:GOOGL, NASDAQ:GOOG) autonomous taxi service Waymo CEO Tekedra Mawakana challenged Tesla Inc. (NASDAQ:TSLA). Mawakana stated that autonomous vehicles are responsible for ensuring safety on the roads during a time when the Robotaxi race in the U.S. is intensifying.

Mawakana said in a media event, "If you are going to put vehicles on the road and take the driver out from behind the wheel, that comes with a responsibility." She also emphasized the importance of transparency when autonomous vehicles are monitored by remote operators.

"It is your responsibility to clearly state what is happening," she added. She expressed the opinion that companies are not taking the necessary steps to ensure safety if they do not operate with transparency. "If you are struggling to accept that, you are not doing what is necessary to make the roads safer," she said at the event.

Tesla CEO Elon Musk announced during the company’s third-quarter earnings call that the Austin Robotaxi service will operate without a driver by the end of 2025. Musk retracted previous promises regarding Tesla Robotaxis serving more than 50% of the U.S. population, stating that they are now aiming to expand to 8-10 major cities.

Waymo announced its plans to bring driverless service to London next year as part of its international expansion goals. The company stated it has driven a total of 100 million miles on public roads in the U.S.

Financial analyst Dan Ives reiterated his optimistic view on Tesla after the earnings call, stating that Robotaxi poses a significant competitive threat to Uber Technologies Inc.'s (NYSE:UBER) business model. However, Morgan Stanley analyst Adam Jonas suggested that Tesla's Full Self-Driving (FSD) technology could generate $1.2 billion annually for the electric vehicle giant and claimed that Tesla has 'cracked' autonomous driving.

On the other hand, NHTSA is investigating various traffic violations and accidents related to Tesla's Full Self-Driving technology.