Tesla Talks Big, While Alphabet And Baidu Surge Ahead In Robotaxi Race

Benzinga
2025.05.27 13:17
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Elon Musk has promised Tesla will launch a robotaxi fleet in Austin by June, but competitors Waymo and Baidu are leading the race. Waymo has achieved 10 million paid rides and operates in multiple cities, while Baidu's Apollo Go has logged 11 million rides and is expanding internationally. Tesla's initial rollout will be limited to 10 vehicles, and despite hopes for quick scaling, the technology still requires human oversight. Investors may want to focus on Waymo and Baidu, who are already making significant progress in the robotaxi market.

Elon Musk has promised robotaxis every year since 2016 – and now, the latest vow is that Tesla Inc TSLA will launch a fleet in Austin, Texas, by June. But while Tesla talks a big game, it is Alphabet Inc's GOOGL GOOG Waymo and Baidu Inc's BIDU Apollo Go that are clocking miles and making money (or at least, showing a clear path to it).

Waymo's Mileage Speaks Louder Than Musk's Words

Alphabet’s Waymo recently crossed a massive milestone: 10 million paid robotaxi rides—double what it achieved five months ago.

With 250,000 weekly trips across San Francisco, Phoenix, Austin and Los Angeles, Waymo's service isn't in beta anymore—it's in people's daily lives.

While it's still not profitable, Waymo's infrastructure is bankrolled by Alphabet's deep pockets and growing investor confidence that it's just a matter of time before it becomes profitable.

Read Also: Tesla Robotaxi Rival Waymo Announces California Expansion As Autonomous Taxi Race Heats Up

Baidu's Apollo Go Looks Beyond China

Over in China, Baidu isn't just playing catch-up—it's scaling fast. Apollo Go gave 1.4 million rides in the first quarter alone, is fully autonomous across 15 cities in China, and recently started testing in Dubai and Hong Kong.

Baidu's robotaxi operation has logged 11 million rides and now wants a piece of Europe, too. CEO Robin Li says Apollo Go is on a "clear path to profitability"—a claim that's not as speculative as it sounds given falling hardware costs and partnerships like the one with Chinese rental giant CAR.

Tesla's Turn—Or Another Detour?

Meanwhile, Tesla is gearing up for a limited robotaxi rollout in Austin—just 10 vehicles, all Model Ys running the upcoming "FSD Unsupervised" software.

Musk has said that if this goes well, they'll scale quickly across LA and San Francisco. But even his supporters know the drill: the tech isn't there yet, and Tesla still requires human supervision.

There's hope for a near-term stock pop, but few believe this will move the revenue needle meaningfully anytime soon.

Waymo and Apollo Go are already playing the Robotaxi endgame, while Tesla is still drawing up the board. Investors looking for substance over sound bites may want to look past the hype and focus on the players already on the road.

Read Also:

  • Tesla Autonomous Driving Rival Pony AI To Expand Robotaxi Fleet Into Dubai Following Agreement With Regulators

Photo: Shutterstock

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