Alphabet's Waymo autonomous rides lag behind Tesla in stock performance

From Yahoo Finance: 2025-06-24 09:39:00

Investor interest in driverless cars is high, but Alphabet Inc.’s Waymo robotaxis in major US cities haven’t boosted stock like Tesla’s. Waymo has driven 71 million miles autonomously, expanding ride-hailing services. Despite valuable tech, Alphabet trades at a discount. Tesla’s stock jumped 8.2% with new Austin robotaxis.

With annual ride-hailing sales projected to exceed $325 billion by 2030, Waymo’s expansion to Los Angeles, Austin, Phoenix, San Francisco, and Atlanta through Uber shows potential. Valued at $45 billion, Waymo adds value to Alphabet’s portfolio, offering long-term upside for shareholders, according to Morgan Stanley.

Though investors favor Tesla’s robotaxi potential, Alphabet’s Waymo has a commercialization advantage. While Tesla’s stock is down 13% in 2025, Alphabet’s shares are down 12%. Waymo has seen a five-fold increase in paid passenger trips, hinting at growing interest on Wall Street.

Amidst the self-driving race, Waymo serves over a quarter-million paid passenger trips each week, showcasing strong growth. Analysts praise AI momentum in tech stocks, expecting a 15-20% rally driven by AI growth. US auto safety regulators are investigating Tesla’s robotaxis for violating traffic laws in Austin.

Meta Platforms CEO Mark Zuckerberg eyed a video startup acquisition, signaling AI deal-making efforts. Huawei’s outdated chip tech hints at US sanctions’ impact on China’s semiconductor development. Chinese AI advancements are expected to spur over 100 breakthroughs in the next 18 months.

Samsung plans a launch event for new foldable smartphones on July 9. Earnings reports due Tuesday. Subrat Patnaik and Jeanny Yu contributed to the article.

Read more: Alphabet Lacks Tesla’s Stock Buzz in Race for Driverless Rides