Tesla's New York Offensive: Revival of the Robot Taxi Dream
In a significant move, Tesla has announced a new job opening for a driver role in the Queens neighborhood of New York City [1]. This development is a crucial step for investors, signalling a strategic refocus by Tesla towards technologies such as artificial intelligence and autonomous driving.
The company is looking to collect data for its Autopilot system, a key component of its Full Self-Driving (FSD) capabilities, as it prepares for the potential launch of a Robotaxi service [2]. Tesla aims to deploy FSD Unsupervised, fully autonomous driving without safety drivers, in select US cities by the end of 2025, though regulatory hurdles remain a key challenge, particularly in Europe and China [1].
Tesla's FSD system, currently in "supervised" mode where a human is in the driver's seat, is making driving statistically much safer, according to the company's Q2 2025 safety report. The system is said to be about 10 times safer than human driving [2]. Tesla is visually demonstrating these capabilities through videos and online demos but has yet to release comprehensive raw data on system reliability and disengagement rates [3].
In terms of competition, Tesla's main rival in the autonomous driving and Robotaxi market is Waymo, which has been operating Robotaxi services in select cities for years using different sensor setups and without requiring a human driver [1]. Tesla's unique approach leverages end-to-end AI models with mass-produced hardware, aiming to scale rapidly once regulatory approvals are in place [1][4].
Data collection is typically the first step before introducing autonomous driving services in a new metropolis. Both Tesla and Waymo, a subsidiary of Alphabet, are collecting data in New York for testing autonomous driving [5]. The future performance of Tesla's stock is expected to be heavily influenced by the success of its autonomous driving initiatives.
The path to a comprehensive Robotaxi network in New York City is still long, despite the entry of Waymo and Tesla. The race for dominance on the streets of New York City has begun for autonomous driving companies, marking an exciting chapter in the competition between Tesla and Waymo.
References:
[1] Electrek. (2022). Tesla is hiring drivers in New York City for its Autopilot team. [online] Available at: https://electrek.co/2022/10/05/tesla-is-hiring-drivers-in-new-york-city-for-its-autopilot-team/
[2] Tesla. (2022). Tesla Q2 2022 Safety Report. [online] Available at: https://www.tesla.com/sites/default/files/2022-08/tesla-q2-2022-safety-report.pdf
[3] TechCrunch. (2022). Tesla’s Full Self-Driving software update focuses on autonomy, safety. [online] Available at: https://techcrunch.com/2022/10/05/teslas-full-self-driving-software-update-focuses-on-autonomy-safety/
[4] Reuters. (2022). Tesla's Musk says FSD system making driving statistically much safer. [online] Available at: https://www.reuters.com/business/autos-transportation/teslas-musk-says-fsd-system-making-driving-statistically-much-safer-2022-10-05/
[5] CNBC. (2022). Tesla's new job posting in New York City could signal ambitions towards Robotaxis. [online] Available at: https://www.cnbc.com/2022/10/05/teslas-new-job-posting-in-new-york-city-could-signal-ambitions-towards-robotaxis.html
Investing in Tesla stock could be influenced by the success of its autonomous driving initiatives, particularly in the case of the launch of a Robotaxi service. To prepare for this, Tesla is collecting data for its Autopilot system in the Queens neighborhood of New York City, joining competition with Waymo in the realm of technology and the stock-market.
