Deep Dive
Why did Tesla's unveiling of its driverless car prototype disappoint investors?
The event was flashy but lacked detailed information about the business and the cars, leading to a 9% drop in Tesla shares the next day.
How does Waymo's robo-taxi service compare to Tesla's driverless efforts?
Waymo is significantly ahead, conducting 150,000 paid rides a week across four cities, while Tesla is still testing its technology and lacks the necessary permits for driverless operations in California.
Why does Elon Musk believe cameras are sufficient for self-driving cars?
Musk argues that cameras are cheaper than LiDAR and that an end-to-end neural network using AI can handle autonomous driving effectively with camera data.
What are the safety concerns with Tesla's end-to-end machine learning approach?
The method struggles with rare situations, such as recognizing fire trucks or avoiding flooded roads, which raises questions about its safety in unpredictable scenarios.
What is the estimated cost of a Waymo vehicle?
Each Waymo vehicle costs approximately $125,000, including the car, LiDAR sensors, cameras, and radar.
How does Waymo plan to expand its robo-taxi service?
Waymo is partnering with Uber to bring paid rides to Austin and Atlanta, leveraging Uber's platform and user base to increase adoption and reduce empty miles.
Why is reducing empty miles important for Waymo's profitability?
Waymo incurs costs for every mile driven, so reducing empty miles increases the proportion of paid rides, improving the economics of the business.
What is the estimated timeline for Waymo to break even?
Assuming 45 daily trips per vehicle and 20,000 vehicles, it could take Waymo up to 10 years to break even on its investments.
Why are Waymo rides currently more expensive than Uber rides?
Waymo rides are about 25-30% more expensive, likely due to the high cost of the vehicles and the technology involved in autonomous driving.
What alternative strategy could Waymo pursue to become profitable?
Waymo could license its technology to other car manufacturers, earning high-margin licensing fees instead of operating the robo-taxi service directly.
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