Well, well – Tesla finally did it. It finally launched its Robo-taxi service in Austin, Texas on Sunday. After literally years of promising that Robo-taxis were coming, we will finally get to see how good the Tesla technology really is…
Now, it was not a spectacular launch. Ten Tesla Robo-taxis made trips lasting around 15 minutes in “geo-fenced” areas that had been previously mapped.
The debut was not open to the public – the rides were offered by invitation only. There was a driver in the front seat ready to take over if anything happened, and the rides were also monitored by remote operators who could also take control of the cars…
Tesla’s Robo-taxis will reportedly operate from 6 AM to midnight, and can be disabled in bad weather. Just how long the Robo-taxis will remain in “testing mode” is not clear. But of Friday, Texas Governor Abbott signed a bill that specifies Robo-taxi service launch requirements that takes effect on September 1.
Those requirements include:
- Operators must demonstrate compliance with Texas traffic laws.
- Vehicles must be equipped with onboard recording devices.
- Autonomous systems must be capable of safely stopping if the self-driving system fails.
- Vehicles must meet federal safety standards.
- Operators need to have procedures in place for interacting with law enforcement and emergency responders.
Pretty basic stuff, really.
Yes, it would be fair to say that Tesla’s Robo-taxis still have the training wheels on. But the September 1 deadline gives a handy roadmap by which to gauge Tesla’s progress…
Is Tesla Playing Catch Up?
If you just looked at Tesla’s share price today, you’d think investors were really excited about yesterday’s launch. After all, the stock was up over $32 at one point today, better than 10%. I’d say it’s more like relief…
Because the fact is, Tesla’s autonomous driving system that powers its Robo-taxis is far behind that of Google’s Waymo. Waymo launched fully autonomous, 24/7 service in San Francisco a year ago. Waymo has since launched in Los Angeles, Phoenix and Austin. It is rolling out in Atlanta right now and will be in Miami and Washington DC over the next several months.
Waymo Robo-taxis have driven over 40 million miles and compiled an impressive safety record. Anecdotal evidence suggests that Waymos are more popular than taxis with humans behind the wheel.
So in some ways, yes, Tesla is playing catch up with Waymo. But the long-term race for Robo-taxi domination is far from over…
That’s because every Tesla built since 2019 is equipped with the hardware for autonomous driving. That’s nearly 2.3 million cars. A year or two from now, Tesla might be in position to release a software upgrade that turns 2.3 million cars into fully autonomous Robo-taxis…
And that’s why yesterday’s launch in Austin was so important for Tesla – and why the stock jumped higher today…Robo-taxis are going to completely revolutionize transportation in the U.S. and around the world.
Some estimate that Robo-taxi revenue will hit $400 billion over the next 5 years. That would make Robo-taxis the fastest-growing technology in history.
Incredibly there are Robo-taxi stocks that still trade under $5 a share. My good friend and colleague Christian “Hammer” DeHaemer is ready to tell you about three of them in his latest Special Report “Three Robotaxi Superstocks Under $5 to Buy Today.”
Take Care,
Briton Ryle
Chief Investment Strategist
Outsider Club
X/Twitter:https://twitter.com/BritonRyle
