Tesla-Waymo To Face 'First Head-To-Head Competition For Robotaxis,' Ross Gerber Says Ahead Of Austin Launch: 'Fascinating To Watch'
Tesla is set to launch its robotaxis in Austin next month, marking the first direct competition with Waymo, which is expanding its testing across the U.S. Ross Gerber, CEO of Gerber Kawasaki, describes this as a pivotal moment in the autonomous vehicle market. He notes the contrasting strategies: Waymo's centralized approach versus Tesla's distributed fleet model. Gerber expresses skepticism about Tesla's readiness, citing issues with its Full Self-Driving technology, while Waymo recently celebrated 10 million autonomous paid rides. Gerber's firm has also reduced its Tesla stake by 10%.
The autonomous vehicle market is witnessing its first direct competition as Tesla Inc. TSLA prepares to launch robotaxis in Austin next month while Alphabet Inc.‘s GOOGL GOOG Waymo expands testing across multiple U.S. cities.
What Happened: Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, characterized the Austin launch as a pivotal moment.
“I find it fascinating to watch the different approaches to autonomy from Tesla and Waymo. With the launch of Austin, it’s the first head-to-head competition for robotaxis and how the business and economics evolve,” Gerber posted on the social media platform X.
The competition highlights contrasting strategies. Waymo operates a centralized approach with dedicated autonomous vehicles, while Tesla pursues a distributed fleet model using existing Model Y vehicles equipped with Full Self-Driving technology.
Why It Matters: Waymo recently announced reaching 10 million autonomous paid rides, doubling that milestone in five months. The company is conducting “Road Trip” tests in San Antonio, Orlando, and Houston to enhance its autonomous driving capabilities beyond current operational cities.
However, Gerber remains skeptical of Tesla’s readiness. The investment manager recently criticized Tesla’s FSD 13.2.9 technology, citing mapping issues and erratic lane-changing behavior. “Google is better,” Gerber stated, referring to Waymo’s superior mapping technology.
Gerber Kawasaki dumped over 26,000 Tesla shares in the first quarter of 2025, representing 10% of the firm’s stake, according to Business Insider. Tesla CEO Elon Musk promises 10 to 20 Model Ys will function as robotaxis on launch day.
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