A recent incident involving Waymo's autonomous vehicle could pose significant challenges for Tesla's own self-driving initiatives, according to insights from financial analyst Gary Black of The Future Fund LLC. Black suggests that any safety-related setbacks experienced by one autonomous vehicle developer might lead to increased scrutiny and a more conservative approach from regulators across the industry, potentially delaying progress for all players, including Tesla.
Black conveyed his concerns via a social media post, emphasizing the collective impact of such events. He underscored that when competing autonomous vehicle companies encounter incidents resulting in injury or damage, it inevitably creates a more cautious regulatory environment. This heightened caution could, in turn, impede Tesla's plans for expanding its autonomous driving capabilities, as regulators may opt to slow down approvals and deployments.
The specific incident prompting this discussion involved a Waymo "Ojai" Robotaxi, developed in collaboration with Chinese automaker Zeekr. This vehicle, while being operated by a human driver during testing in Los Angeles' Echo Park area, was involved in a collision with multiple parked cars. This event has since attracted the attention of the National Highway Traffic Safety Administration (NHTSA), which has initiated an investigation. The "Ojai" Robotaxi, revealed earlier this month at the Consumer Electronics Show (CES), boasts Waymo's sixth-generation autonomous driving technology, incorporating a comprehensive suite of sensors including cameras, radar, and LiDAR.
Amidst these industry-wide implications, Tesla continues to advance its own robotaxi endeavors. The company recently announced a strategic shift in its pricing model for the Full Self-Driving (FSD) service. CEO Elon Musk indicated that after Valentine's Day, the FSD service would transition to a subscription-only model, priced at $99 per month, discontinuing the previous one-time upfront payment option of $8,000. This change reflects Tesla's evolving approach to monetizing its advanced driver-assistance systems.
Market analysts have noted Tesla's strong performance in key metrics. According to Benzinga Edge Rankings, the company demonstrates robust momentum and a favorable price trajectory in both the medium and long term. Despite the broader regulatory concerns, investor Gene Munster of Deepwater Asset Management remains optimistic about Tesla's robotaxi prospects, citing the company's recent release of FSD subscription data as an indicator of confidence in its technological advancements.
The stock performance for Tesla saw a decline of 3.45% to $416.56 during Thursday's market close, though it experienced a rebound, rising 2.87% to $428.50 in after-hours trading. This fluctuation underscores the dynamic nature of the autonomous vehicle market and the various factors influencing investor sentiment.
The unfolding events highlight the critical interplay between technological innovation, public safety, and regulatory oversight in the rapidly evolving autonomous vehicle sector. As companies like Waymo and Tesla push the boundaries of self-driving capabilities, each incident, regardless of the responsible party, can reverberate across the industry, shaping its future trajectory and the pace of widespread adoption.