WSJ Tech News Briefing: Robotaxi Competition Revs Up as Tesla Hits the Road in Austin

Release Date: June 24, 2025
Host: Victoria Craig, The Wall Street Journal

Introduction to the Robotaxi Race

In the latest episode of the Wall Street Journal's Tech News Briefing, host Victoria Craig delves into the burgeoning competition within the robotaxi industry, spotlighting Tesla's recent foray into the market with its Austin, Texas launch. As self-driving technology gains traction across American cities, established players like Alphabet's Waymo face new challenges from ambitious entrants such as Tesla.

Tesla's Entry into the Robotaxi Market

Launch Details and Initial Response

Becky Peterson, the Wall Street Journal's reporter on Tesla and Elon Musk, provides an overview of Tesla's recent robotaxi deployment:

"Tesla invited a small group of its most vocal influencers and fans to download their new Robo Taxi app... they are running Tesla's special software so that they can drive without a human behind the wheel. And so far... it's going okay."
[01:33]

Elon Musk announced a cautious rollout with only 10 to 20 cars initially, assessing performance before expanding the fleet.

Strategic Vision and Revenue Projections

Katherine Blunt, a technology reporter, discusses the ambitious revenue projections associated with Tesla's robotaxi services:

"A major Tesla investor projects that ride hailing could become a more than $900 billion business for Tesla in the next five years and make up 90% of its earnings."
[03:28]

Becky Peterson adds a note of skepticism regarding these projections:

"It's really hard to see how they get there. Just to give an example, Uber... had gross bookings of around $163 billion in 2024."
[03:55]

Waymo's Established Presence and Expansion Efforts

Current Operations and Challenges

Katherine Blunt contrasts Tesla's nascent efforts with Waymo's established operations:

"Waymo has a roughly four-year head start on Tesla, and that company still is not yet profitable."
[03:28]

Waymo is actively seeking to expand into more competitive markets like New York City but faces regulatory hurdles:

"The company has said that it needs sort of a special permit issued by the NYC Department of Transportation... it's committed to trying to get the right pieces in place to be able to try to compete in New York City."
[02:44]

Preparing for Increased Competition

As competition intensifies, Waymo continues to invest in technology and expand its service offerings:

"Waymo has a head start and continued to invest in this industry and in this technology... Doesn't show signs of slowing down or becoming complacent at this juncture."
[05:05]

Consumer Sentiment and Regulatory Environment

Consumer Enthusiasm

Victoria Craig questions whether consumers are as eager as companies to adopt robotaxi services, considering past resistance in cities like San Francisco. The discussion reveals mixed sentiments, with influencers cautiously optimistic about Tesla's initial rollout.

Impact of Local Regulations and Politics

Katherine Blunt highlights the complexities of navigating local regulations and political landscapes:

"Waymo recognizes the need to be attuned to what's happening in terms of political gatherings and demonstrations... It's going to be some time before we see how that shakes out."
[07:23]

Becky Peterson discusses the potential impact of Elon Musk's political engagements on Tesla's consumer base:

"Politics have hurt car sales, so there's reason to think it might hurt that part of the dream."
[08:12]

AI and Technology Integration

IBM's Perspective on AI Trustworthiness

Hrithika Gunner, General Manager for Data and AI at IBM, provides insights into building trustworthy AI systems:

"Generative AI has allowed us to unlock the opportunity to take the 90% of data that is buried in unstructured formats... essential for organizations as we go forward."
[06:15]

She emphasizes the importance of AI governance, policy enforcement, and continuous updating to ensure safety and security in AI applications.

Future Outlook and Industry Implications

The episode concludes with a look ahead, considering the potential for federal regulations to streamline autonomous vehicle deployment:

"Sean Duffy, the US Transportation Secretary, has taken some steps to indicate that he's interested in doing more work with a federal autonomous vehicle framework."
[09:28]

Becky Peterson notes the ongoing regulatory changes:

"Make it easier to put a car out there that doesn't have a steering wheel or pedals... but so far it's still regulated locally."
[09:28]

Conclusion

As Tesla enters the robotaxi arena with its Austin launch, the competition with established players like Waymo intensifies. While Tesla's ambitious projections capture the imagination, questions about consumer adoption, regulatory challenges, and market viability remain. Meanwhile, advancements in AI by companies like IBM underscore the broader technological shifts driving the future of autonomous transportation.

Produced by: Julie Chang
Supervising Producer: Melanie Roy
Host: Victoria Craig, The Wall Street Journal