Is Alphabet’s Waymo a threat to Tesla and its self-driving technology?
Waymo is, according to analysts, worth around 3-5x as much as Musk’s hyped-up Tesla, and yet it hasn’t sold a single car.
Why is Waymo so valuable? Because while Tesla will compete with tens of electric car companies in 2+ years time, Waymo will dominate the software behind driverless cars in a similar way Android has dominated the software behind phones. If you look at the figures – Waymo is way ahead in driverless cars – no-one comes close.
Unfortunately, Tesla won’t become the end-to-end automobile equivalent of Apple in the smartphone space, because its driverless technology won’t ever cut the mustard. And that’s even if Apple buys it.
Waymo won’t let go of this lead – it’ll be first to build a truly autonomous car and by the time number two gets its act together, Waymo will already have billions of miles of on-the-road data making it light years ahead, in particular in terms of safety.
Waymo is as much a threat to Tesla in driverless technology as Android is to BlackBerry in smartphones. I.e. it’s not just a threat, it has already killed most of Tesla’s ambitions…