Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Barchart
Barchart
Caleb Naysmith

Elon Musk Once Said “Owning Anything But a Tesla Would Like Owning A Horse” But Tesla Might Be Falling Behind in the Self-Driving Revolution

Tesla's (TSLA) self-driving ambitions have long been a focal point of Elon Musk's vision for the future. The company's plan to dominate the autonomous vehicle (AV) space has captured the imagination of investors and enthusiasts alike. However, as the much-anticipated Robotaxi Day approaches, it appears that Tesla may be struggling to keep up with its competitors, particularly Alphabet’s (GOOGL) Waymo. While Musk's bold claim in 2022 that "owning anything but a Tesla would be like owning a horse" sounded revolutionary, the reality on the ground suggests that Tesla's journey to fully autonomous vehicles is far from smooth.

The Race to Autonomous Driving: Tesla vs. Waymo

The autonomous driving race has intensified, with various players vying for dominance. Among them, Waymo has emerged as a clear leader. Waymo has deployed self-driving cars in several cities across the U.S., including Phoenix, San Francisco, and Los Angeles​. These cities have become testing grounds for Waymo's autonomous technology with real-world applications already in place. This is in stark contrast to Tesla, which, despite years of promises and development, has yet to roll out a fully functioning self-driving car fleet.

Tesla Faces Continued Delays

Despite Musk's frequent proclamations of progress, Tesla's AV efforts have faced continued delays. The company's Full Self-Driving (FSD) system has been rolled out to some Tesla owners, but it remains far from the fully autonomous experience that Musk envisioned. Moreover, Tesla's FSD has been met with skepticism due to its reliance on a vision-only system and the continued need for human intervention in many scenarios​.

While Tesla grapples with these challenges, Waymo has quietly made significant strides. The company has been operating driverless taxis in several cities and has recently secured a $5 billion multi-year funding commitment from its parent company, Alphabet​. This funding will likely help Waymo expand its operations and continue refining its technology, further solidifying its lead in the autonomous driving race.

The Future of Tesla's Autonomous Ambitions

Despite the challenges, Tesla remains committed to its autonomous vision. Musk has indicated that the company's future differentiation lies in autonomy, and he sees robotaxis as a massive profit opportunity. Tesla has already reduced the price of its FSD package in North America and launched free trials for car owners who have the required hardware, signaling its intent to accelerate adoption​.

However, it's becoming increasingly clear that Tesla's autonomous ambitions may be more long-term than initially anticipated. Some analysts suggest that meaningful returns from Tesla's AV initiatives may not materialize until the next decade​. This raises important questions about the company's strategy and whether it can maintain its position as a leader in the EV and AV markets.

Will Robotaxi Day Put them Back on Track? 

As Robotaxi Day approaches, the spotlight will be on Tesla to deliver on its promises of autonomous driving. However, with Google's Waymo already leading the charge in multiple cities, Tesla already faces significant competition in the AV space. While Musk's confidence in Tesla's ability to disrupt the transportation industry remains unshaken, the company's challenges suggest that the road to autonomy will be longer and more complex than initially anticipated.

 

On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.