Key Takeaways
- Waymo's Lidar technology is greatly more expensive than Tesla's camera-based system
- Currently, Tesla cars can only achieve level 2 SAE, whereas Waymo's cars are already level 4 SAE
- Tesla has announced a $0.12/Km vs Waymo's current pricing of up to $8.75/Km
- Waymo will need to find ways to remain competitive before Tesla launches its RoboTaxis
Introduction
Self-driving is becoming a more commonplace phrase in today's society. As such, more companies are entering the space. This is why we have drawn a comparison between Waymo vs Tesla to see which of the two car companies has a potentially more profitable future.
From my experience as an investor, I look to uncover the technology as well as the financials behind a company before committing any capital toward it. Below we will explore in-depth which of the two companies you may want to add to your investment portfolio based on each company's technology and potential future.
Comparison between Waymo and Tesla
Both companies offer unique technology that is driving the future of transportation, both of which specialize in the autonomous driving industry. With this in mind, you can easily spot key differences, and similarities, between the two.
Lidar vs camera technology
Technologies such as Lidars and cameras are used to act as the 'eyes' for self-driving cars. However, there is a lot of debate about which system is superior. As we can see below, both Waymo and Tesla use different systems for their car's 'eyes'.
Waymo has taken the Lidar approach, also known as Light Detection and Ranging (Lidar), this system is capable of recreating 3D virtual environments in real-time and is highly more accurate when judging the distance between objects. Lidar is renowned for its accuracy and precision.
Tesla, on the other hand, uses a camera-based system for its car's vision. There are many reasons why Tesla has opted for cameras vs Lidar, and it stems down to three key points, they work better during poor weather conditions, they are smaller and can be placed across the car, and they are a lot cheaper than Lidar systems.
Both approaches are viable and are in operation today. The crux between the two directions will come down to continuous improvements, safety, and affordability. If these three points are satisfied, then would it matter what system is being used?
Actual autonomous driving
Frustratingly, many Tesla users have been promised the long-awaited "sleep and be driven home" promise. Yet, Tesla has still faced several roadblocks and missed key announced release dates. This could potentially be down to regulatory and technological limitations.
Whereas Waymo, currently operating at a level 4 SAE vs Tesla's level 2 SAE, has deployed its autonomous vehicles in confined and coordinated locations. Waymo's level of autonomous driving is beyond Tesla's. Waymo's rollout across other cities will likely result in overcoming regulatory and production issues.
Waymo vs Tesla pricing
Buckle up for this shocking difference between Waymo vs Tesla, because going with Waymo may pinch at the wallet. Currently, Waymo's autonomous taxi service will cost you $8.75/Km. In some cases, this is more expensive than an average human-driven Uber ride.
On the other hand, although Tesla hasn't fully rolled out its autonomous taxi services, the company announced its price will cost users around $0.12/Km! This is 98.6% cheaper than Waymo. If true, then Waymo may be in for a tough time with its competition.
Financial future between Waymo and Tesla
When discussing financial success, Tesla will clearly come out as the winner, due to its numerous business ventures and offerings. If we just focus on the autonomous taxi services between the two companies then the divide begins to narrow.
Waymo's taxi services are currently ahead of Tesla in terms of market share, considering Tesla is yet to roll out its robotaxi services, and so Waymo has a track record of successful integration, whereas Tesla has not.
On the other hand, when Tesla finally gets approval and launches its fleet of taxis, Waymo could see a sharp decline in users due to the wide cost differences. This could greatly enhance Tesla's sales revenue while damaging Waymo's.
Frequently Asked Questions
Is Waymo a competitor to Tesla?
Yes, once Tesla fully launches its fleet of robotaxis, Tesla will directly compete against Waymo for market share. This may greatly impact Waymo's future revenue.
Which countries have driverless taxis?
Currently the United States and China. The US's Waymo has achieved high amounts of market penetration whereas China's Pony.AI is slowly growing in popularity across cities such as Shenzhen.
Are self-driving a good idea?
It depends on who you ask and what data you're trying to look for. In terms of safety, pricing, and efficiency, self-driving cars are a good idea.
Conclusion
Based on the above analysis of Waymo vs Tesla, it is quite clear that both companies offer a unique service that compliments the autonomous driving industry. But, considering Waymo's expensive Lidar system and high travel prices, Tesla may reach maximum market penetration based solely on its competitive pricing structure.
For Waymo to remain competitive, the company will have to explore ways to greatly reduce its prices, if not, then I personally wouldn't bet on Waymo as a long-term contender in the self-driving taxi industry, purely because consumers won't want to pay the high travel fees.
