The world of autonomous driving is rapidly approaching a key moment: Tesla Inc (NASDAQ:TSLA) is set to hold its Robotaxi event on Oct. 10.
What Happened: The Austin, Texas-based car manufacturer is gearing up to make yet another bold move, despite divided public opinion on driverless technology. Nearly 63% of American adults would not ride in a driverless vehicle, according to a Pew Research survey.
And who can blame them?
High-profile crashes involving General Motors Co's (NYSE:GM) Cruise, along with lingering doubts about safety, leave many hesitant.
Tesla's record with autonomous driving features has also faced regulatory scrutiny and multiple lawsuits after hundreds of accidents. After years of delays, Tesla CEO Elon Musk is finally set to unveil Tesla's robotaxi network, but skepticism surrounds whether it will live up to the hype.
Waymo, owned by Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), has already established a substantial lead in the market. It currently boasts over 22 million driverless miles and soaring demand in cities like San Francisco and Phoenix.
Tesla does not yet have any fully-driverless vehicles on the road.
Read Also: Tesla's Former Head Of Vehicle Programs Who Left On The Heels Of Mass Layoff Joins Waymo
Why It Matters: Waymo has worked hard to reassure users with a safety-first approach, including a dedicated online hub touting the reliability of its cars.
Tesla, however, has a history of overpromising.
When the company first introduced Full Self-Driving (FSD) in 2016, it claimed that the car would eventually be able to drive itself completely, with no supervision required.
Musk touted that it would be roughly two years before driverless cars could be summoned. See below.
In ~2 years, summon should work anywhere connected by land & not blocked by borders, eg you're in LA and the car is in NY
— Elon Musk (@elonmusk) January 10, 2016
But by 2024, Tesla hadn't revealed any driverless tech. It even changed the acronym on its app from FSD to "Supervised," meaning drivers still have to keep their hands on the wheel and pay attention to the road.
Whether the Robotaxi event reveals any progress in this segment remains to be seen.
Regardless of how far along autonomous technology is, the stakes remain high for ride-sharing services like Uber Technologies Inc (NYSE:UBER) and Lyft Inc (NYSE:LYFT).
Why rely on a human driver, tip included, when a robotaxi might be available at a tap?
- Uber Launches OpenAI's ChatGPT-Based Driver Assistant To Support Transition To EVs
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