Investment Rating - The report maintains a "Recommended" investment rating for the industry, indicating an expected outperformance of over 10% compared to the relevant market index within the next 12 months [12]. Core Insights - Waymo is experiencing rapid operational expansion, with active operations in cities like Phoenix, San Francisco, Los Angeles, and Austin, and plans to enter Nashville, Miami, and Washington [3][4]. - The company currently operates approximately 1,500 active vehicles and aims to expand to 3,500 vehicles by 2026, with weekly paid rides exceeding 250,000 and a total of 4 million fully autonomous rides completed in 2024 [3][4]. - Waymo's technological advancements in autonomous driving are supported by research in perception and planning systems, enhancing safety and operational efficiency [5]. - The regulatory environment is becoming more favorable, with local approvals for services in complex scenarios like airports, reflecting increased acceptance of autonomous driving by local governments [6]. Summary by Sections Operational Expansion - Waymo is establishing a "multi-city interconnected" operational model, collaborating with Lyft to launch services in Nashville by 2026 and expanding service areas in Austin through Uber [4]. - The company has significantly increased operational intensity, with weekly trip counts surpassing 250,000, indicating strong market demand [4]. Technological Iteration - Waymo continues to enhance its core autonomous driving capabilities, with research showing potential performance improvements through larger data scales and higher computing power [5]. - The company has demonstrated superior safety performance compared to human drivers, bolstering public trust in its commercial viability [5]. - Production efficiency is improved through automated assembly processes, allowing vehicles to be operational within approximately 30 minutes post-manufacturing [5]. - Waymo is accelerating the electrification of its fleet by introducing new electric vehicle models, optimizing range and operational costs [5]. Policy Environment - Waymo's compliance and adaptability to regulatory frameworks are improving, with local government approvals indicating a growing acceptance of autonomous vehicles in public transport systems [6]. - Nationally, the establishment of a federal policy framework by the Autonomous Vehicle Industry Association (AVIA) is expected to provide regulatory support for nationwide operations [6]. Investment Recommendations - The report suggests that Waymo is well-positioned to establish itself as a leader in the U.S. autonomous ride-hailing market, driven by its urban network, technological leadership, and supportive policies [7]. - Although currently in a high-investment phase, Waymo is expected to improve its profitability over the coming years, becoming a benchmark for global autonomous driving commercialization [7].