Tesla Inc.’s robotaxis have been involved in over a dozen crashes in Austin since service began, according to reports the carmaker has made to regulators.The electric vehicle maker has said its nascent robotaxi business has been involved in 14 crash incidents in about eight months, according to data sent to the National Highway Traffic Safety Administration. A federal order requires carmakers to report when automated driving systems are involved in certain crashes. Tesla launched its limited robotaxi servic ...

Autonomous driving and fully driverless robotaxis could be the future of automotive transportation -- and that future is coming fast. A recent report from McKinsey predicts that 2030 could be the year when robotaxis achieve mass deployment around the world. McKinsey defines a robotaxi as a "vehicle on demand" operating in urban areas with autonomous driving capabilities of Level 4 (able to function without a human driver ready to take over) or Level 5 (fully autonomous in any environment and conditions). ...

Core Insights - Tesla is heavily investing in autonomous driving, with its robotaxi program being a crucial element of its long-term growth strategy. The first robotaxi service was launched in Austin, TX, on June 22, 2025, and has been expanding steadily since then [1] Group 1: Progress and Expansion - Tesla's robotaxis are currently operational in Austin and the California Bay Area, with Austin showing faster progress. Fully driverless rides began testing in December 2025, and safety monitors were removed in January for some customer trips, indicating increased confidence in the system [2] - The company plans to launch robotaxi services in seven new cities in the first half of the year, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, aiming to capture a significant share of the ride-hailing market [3] - Since their launch, Tesla's robotaxis have logged nearly 700,000 paid miles, with a fleet of over 500 vehicles that is doubling approximately every month. The company is also investing in service and infrastructure to support this growth [4] Group 2: Vehicle Development - Tesla is developing the Cybercab, a vehicle designed specifically for autonomous driving, which lacks a steering wheel and pedals. Volume production is expected this year, potentially accelerating Tesla's scaling efforts [5] Group 3: Competitive Landscape - Tesla's robotaxi services are in competition with Waymo, which is currently leading the market with over 450,000 paid rides per week in the U.S. Waymo is also expanding its services to multiple cities [9] - Amazon's Zoox is taking a different approach by building a vehicle from scratch for autonomy, featuring unique design elements for shared rides. Zoox has begun offering free public rides and plans to start charging customers in 2026 [11] Group 4: Future Outlook - Elon Musk has set ambitious targets for Tesla, including 10 million Full Self-Driving subscriptions and 1 million robotaxis in commercial use, contingent on regulatory approval and public trust [6] - There is skepticism regarding Musk's timeline for achieving these goals, especially given past missed targets. However, current progress on the ground makes these targets appear more plausible [8]

Core Insights - Tesla has initiated robotaxi rides in Austin without a human safety driver, marking a significant step in its autonomous vehicle strategy [1] - CEO Elon Musk announced this development on social media, celebrating the Tesla AI team's efforts and inviting engineers to join the team [1] - The robotaxi service in Austin began with limited deployment last June, initially requiring a safety operator, and transitioned to testing without a driver in December [2] Deployment Details - The current fleet in Austin will not be entirely driverless; a mix of supervised and unsupervised vehicles will operate, with plans to increase the ratio of unsupervised vehicles over time [3] - It remains unclear whether Tesla is charging for these rides, as competitors like Zoox and Waymo did not charge for their initial driverless rides [3]

Group 1: Vehicle Deliveries - In the fourth quarter, Tesla's total vehicle deliveries were 418,227, representing a 15% decline from 495,570 vehicles delivered in the same period last year [1] - For the full year, Tesla delivered 1.64 million vehicles, which is an 8% decrease compared to the previous year, marking the second consecutive year of annual sales declines [2] - Tesla's fourth quarter delivery total fell short of Wall Street forecasts, which were just under 423,000 vehicles [1][2] Group 2: Market Reactions and Analyst Insights - Following the delivery report, Tesla's stock rose about 1% early Friday, and it increased by 2% before the bell on the same day [1][2] - Some analysts speculated that Tesla's release of estimates was a strategy to mitigate the impact of a poor delivery report [3] - Despite the smaller-than-expected fleet size, the narrative around Tesla's robotaxi remains strong, according to Deutsche Bank analyst Edison Yu [5] Group 3: Sales Performance and Future Outlook - Cox Automotive's Kelley Blue Book estimated that Tesla's US sales fell to 125,900 units in the fourth quarter, a decline of 22.4% [4] - Analysts are optimistic about Tesla's future, with Wedbush analyst Dan Ives naming Tesla as one of his top AI plays for 2026, highlighting the potential of full self-driving and autonomous penetration [6][7] - The upcoming year is viewed as significant for Tesla, with expectations of an AI-driven valuation increase over the next 6-9 months [7]

Core Viewpoint - The article discusses three distinct AI stocks that investors should consider for long-term investment, highlighting their unique attributes and potential in the AI sector. Group 1: Alphabet (GOOGL) - Alphabet is characterized as a stable investment with a high floor due to its established position in AI and cloud computing, making it a reliable choice for investors [5][8] - The company reported a market capitalization of $3.8 trillion and generated $74.1 billion in revenue from its core digital advertising business in Q3 [7] - Alphabet's ongoing investments in autonomous vehicles and quantum computing further enhance its growth prospects, making it a dependable option for buy-and-hold investors over the next three to five years [8] Group 2: Tesla (TSLA) - Tesla represents a high-risk, high-reward investment, with CEO Elon Musk emphasizing the potential value of its humanoid robot, Tesla Optimus [9][12] - The company has a market cap of $1.5 trillion, but its core vehicle business has faced challenges in recent quarters, which could impact stock performance [10][12] - The humanoid robotics market is projected to grow into a $5 trillion total addressable market by 2050, presenting significant upside potential for Tesla [11] Group 3: International Business Machines (IBM) - IBM is positioned as a rare AI dividend stock, appealing to investors seeking income alongside growth, with a dividend yield of 2.27% [13][15] - The company has a market cap of $277 billion and has raised its dividend for 29 consecutive years, reflecting its long-term growth capabilities [14][15] - IBM is actively expanding its AI ecosystem through mergers and acquisitions, with anticipated earnings growth at a high-single-digit annualized rate over the next three to five years [16]

Core Viewpoint - Tesla Inc. has made an atypical move by preemptively releasing quarterly delivery estimates, which has raised eyebrows among analysts and investors [1][2]. Group 1: Delivery Estimates - Tesla's delivery estimates for the fourth quarter are around 423,000, which is below the analyst consensus of approximately 445,000 [2][4]. - Out of the predicted 423,000 deliveries, over 388,000 are expected to be from Model Y and Model 3 sales [3]. Group 2: Analyst Insights - Gary Black, a managing director at The Future Fund LLC, described the release of delivery estimates as "highly unusual" for Tesla, indicating a strategic intent behind the move [2][4]. - Gene Munster from Deepwater Asset Management has predicted that Tesla's deliveries may fall short of expectations, estimating around 415,000 deliveries due to challenges such as the end of the Federal EV Credit [6]. Group 3: Potential Announcements - The release of delivery estimates may coincide with a significant announcement from Tesla, potentially regarding the removal of safety monitors from Robotaxis in Austin [4][6]. - Tesla has been conducting driverless testing operations for its Robotaxi in Austin, which could be linked to the anticipated announcement [5].

Group 1: Waymo's Expansion and Operations - Waymo, backed by Alphabet Inc., is testing its Robotaxi service in London, with plans for expansion in the city [1][3] - A video showed a Waymo-branded Jaguar I-Pace electric vehicle on London streets, although it was not operating autonomously during the recording [2] - The company has reached 14 million paid Robotaxi rides in 2025, indicating significant growth in its service [3] Group 2: Challenges in Existing Operations - Waymo has faced disruptions in its San Francisco Robotaxi operations due to a PG&E Corp. substation outage, leading to a temporary pause in service [4] - The company also halted operations in the San Francisco Bay Area on Christmas Day due to severe weather warnings, including flash floods [4] Group 3: Competitive Landscape - Other companies, such as Uber and Lyft, are partnering with Baidu's Apollo Go to introduce self-driving taxis in the UK next year, indicating increasing competition in the market [5] - Tesla is also advancing its Full Self-Driving technology in Europe, showcasing the competitive dynamics in the autonomous vehicle sector [6]

Core Insights - Tesla's CEO Elon Musk has demonstrated a driverless Robotaxi in Austin, indicating progress towards the company's end-of-year autonomous driving goals [1][2]. Group 1: Robotaxi Demonstration - Musk shared on social media that he experienced a fully autonomous Tesla Robotaxi without a safety monitor, which successfully navigated Austin [2]. - Tesla's AI lead, Ashok Elluswamy, also shared a video of the Robotaxi driving autonomously, highlighting the positive experience [3]. - The video raised concerns as the Robotaxi reportedly exceeded the speed limit, reaching 37 mph in a 30 mph zone, prompting questions about safety [4]. Group 2: Software Development - Musk stated that Tesla's software has significantly improved since the departure of former AI lead Andrej Karpathy, suggesting that previous assessments of the software may be outdated [5]. - Nvidia's head of Robotics praised Tesla's Full Self-Driving system, indicating its high accuracy in driving capabilities [5]. Group 3: Future Expansion Plans - Tesla is planning to expand its Full Self-Driving technology into Europe, with collaboration from the Dutch auto regulator RDW, aiming for deployment by February 2026 [6]. Group 4: Market Performance - Tesla's stock has shown positive momentum and quality metrics, although it has been rated poorly on value [7]. - The stock price was reported at $484.26, reflecting a slight decline of 0.23% during after-hours trading [7].

Core Insights - Investor Gary Black views Tesla as the "most profitable EV business model on the planet," highlighting the company's upcoming Optimus production, enhanced autonomous driving technology, and CEO Elon Musk's commitment as positive factors for the company [2]. Valuation Concerns - Despite the positive outlook, Black expresses concerns over Tesla's valuation, noting a Price/Earnings ratio of 220x against a long-term forward EPS growth of +35% and declining earnings estimates [3]. - He emphasizes the importance of focusing on financials rather than solely on technology, warning that neglecting financial metrics can lead to poor investment decisions [3]. Autonomous Driving Developments - Black mentions the removal of safety monitors as a potential catalyst for Tesla, indicating that the technology is ready for broader deployment [3]. - Musk's promise of advancements in autonomous driving by year-end is seen as a factor contributing to the recent stock price increase [3]. Robotaxi Service Doubts - Concerns have been raised regarding the scale of Tesla's Austin Robotaxi service, with reports indicating that the service was unavailable over 60% of the time and only 32 vehicles identified in the fleet, significantly lower than Musk's target of 1,000 [4]. - In contrast, Waymo, backed by Alphabet Inc., is leading the autonomous taxi sector with over 14 million paid Robotaxi rides recorded in 2025 [5]. Performance Metrics - Tesla scores well on Momentum and Quality metrics but is rated poorly on Value, with a favorable price trend observed in the short, medium, and long term [6]. - As of the latest market close, TSLA shares slid 0.11% to $485.03 during after-hours trading [6].