Robotaxi

Mobileye is launching its own robotaxi service, aiming to deploy 100 vehicles in a major U.S. city by 2027 and scale to 17,000 within five years. This strategic pivot marks a direct entry into the autonomous mobility market, building on its expertise as a technology supplier. The move is seen as complementary to its existing business, allowing for real-world data collection and demonstration of its autonomous driving platform. Investor sentiment reacted positively to the announcement.

Texas now allows commercial driverless vehicles, mandating Level 4 self-certification. Waymo leads with 577 authorized robotaxis, while Tesla has 42. This contrasts with Tesla’s historically reported Level 2 systems, raising questions about their Level 4 claims for their new robotaxi service launched in June 2025. Tesla trails Waymo and other players like AV Ride and Zoox in authorized vehicle numbers in Texas.

Waymo is voluntarily recalling about 3,800 robotaxis due to a software flaw that could cause them to drive into flooded roads. This recall follows incidents of Waymo vehicles stalling on flooded streets and a previous incident where a vehicle was swept into a creek. Waymo is implementing software safeguards and operational restrictions during extreme weather to prevent future occurrences.

Tesla’s stock surged over 6% following Elon Musk’s announcement of a significant AI chip milestone for mass production. This development, coupled with analyst upgrades and positive sentiment surrounding a new SUV and software updates, boosted investor confidence. Tesla is investing heavily in AI and advanced computing, including building new chip fabrication facilities. The company is also focused on advancing its humanoid robot and autonomous driving capabilities, integrating AI chatbot Grok into its vehicles.

Baidu’s Apollo Go robotaxis experienced significant disruptions in Wuhan, with vehicles stalling mid-traffic and involved in collisions, leading to passengers being temporarily trapped. Authorities cited “system malfunctions” as the suspected cause, with investigations ongoing. This incident highlights challenges in scaling autonomous vehicle technology amidst a competitive market and ongoing regulatory developments.

Amazon’s Zoox is expanding its robotaxi pilot programs to Austin and Miami, building on operations in Las Vegas and San Francisco. The company is increasing coverage in San Francisco and planning airport transfers in Las Vegas. Zoox is also testing in ten US cities and awaiting regulatory approval for commercial operations, aiming for 100 robotaxis on public roads soon. A partnership with Uber will integrate Zoox into its platform in Las Vegas.

Uber plans to invest up to $1.25 billion in Rivian to deploy up to 50,000 robotaxis globally by 2031. The deal includes procuring 10,000 autonomous Rivian R2 vehicles, with an option for an additional 40,000. This strategic partnership, with an initial $300 million investment, aims to accelerate robotaxi adoption, with initial city launches planned for 2028.

Zoox is partnering with Uber to offer its robotaxi service through the Uber app in Las Vegas starting this summer, with plans to expand to Los Angeles next year. This collaboration marks Zoox’s first major third-party integration and aims to increase vehicle utilization by leveraging Uber’s rider network. While Zoox has been testing its autonomous vehicles, this move signals a significant step towards commercialization, though regulatory approval remains a key hurdle.

Waymo, an Alphabet company, has expanded its robotaxi service to Dallas, Houston, San Antonio, and Orlando, bringing its total U.S. operational cities to ten. This move deepens its autonomous vehicle dominance amidst a competitive landscape. The company plans a phased rollout, aiming for general availability in these new markets by late 2026, while continuing to address public trust and regulatory scrutiny.

New York Governor Kathy Hochul has halted a proposal for commercial robotaxi services, a significant setback for companies like Waymo. The decision came after a lack of legislative support and opposition from labor unions and drivers concerned about safety and jobs. While Waymo expressed disappointment, they remain committed to future collaboration in New York and continue their expansion plans in other U.S. cities and internationally. The autonomous vehicle sector faces increasing competition and scrutiny following recent safety incidents.