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TechCheck

Waymo’s Advantage with Potential Federal Self-Driving Rules 11/18/24

TechCheck

CNBC

Disruptors, Investing, Faang, Technology, Business, Management, Cnbc, Tech

4.856 Ratings

🗓️ 18 November 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

A federal framework for regulating self-driving technology instead of state-by-state ones is more likely to benefit the current and arguably underappreciated leader in self-driving cars, Waymo, which has clocked 25 million rider-only miles and is completing more than 150,000 paid rides a week.

Transcript

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0:00.0

shares a Tesla rallying today as the incoming Trump administration reportedly looks to set up a federal regulatory framework that could ease rules around self-driving cars.

0:09.5

It's not the only name seen in boost today.

0:11.6

Deirdre Bose has got more on that in today's tech check.

0:14.0

Interesting headlines today, Dee.

0:16.0

It certainly is Carl.

0:17.2

So key for investors to keep in mind is that Tesla's biggest barrier to deploying

0:22.0

Robotaxi, it isn't regulatory, but rather it's its own FSD technology that is still far

0:28.3

from fully autonomous and still requires driver supervision. Musk, remember, has missed his own

0:33.6

self-imposed deadlines, time and time again. So it is worth looking at some of the other

0:37.7

public names in the AV space like Mobile Eye, Aurora, Wii Ride. That's a Chinese self-driving

0:42.8

startup that went public on the NASDAQ last month. They're all surging today as well. But the current

0:48.9

far and away and maybe unappreciated or underappreciated leader remains Alphabet subsidiary Waymo.

0:55.7

It, not Tesla, would likely be the biggest beneficiary from a federal framework if that were to happen.

1:01.3

Now, through June of this year, let me remind you, Waymo clocked 25 million rider-only miles.

1:06.9

Today, it's completing more than 150,000 paid rides per week.

1:11.0

It also just raised $5.6 billion.

1:13.2

It opened to the public in L.A.

1:15.5

And it will be available in Austin and Atlanta early next year.

1:18.6

Simply put, Waymo is the one setting the standard for the Robotoxy industry,

1:23.1

while Tesla AV developments, they're still in its very early stages.

1:29.3

And Waymo's real world driving data and experience, that would give it an advantage in meeting federal rules, especially

1:34.2

compared to newer or less experienced competitors. Now, that is all if Trump policymakers could

...

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