The Zacks Analyst Blog General Motors, Alphabet's, Tesla, Amazon's and Baidu

For Immediate ReleasesChicago, IL – December 12, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including General Motors GM, Alphabet’s GOOGL, Tesla TSLA, Amazon’s AMZN and Baidu BIDU.Here are highlights from Thursday’s Analyst Blog:Robotaxi Faceoff: Waymo vs. Tesla After GM's ExitU.S. legacy automaker General Motors has announced its exit from the robotaxi business, marking the end of its Cruise division’s ambitious plans to compete in the self-driving ride-hailing market. After investing over $10 billion into Cruise since its acquisition in 2016, GM cited several reasons for pulling the plug, including intense competition, high capital demands, and extended timelines to profitability.The automaker will now shift its focus toward integrating autonomous driving technology into personal vehicles, combining Cruise’s operations with GM’s technical teams. GM expects to save over $1 billion annually through its restructuring efforts, which is expected to be completed in the first half of next year.The decision comes after Cruise faced significant setbacks, including regulatory scrutiny and safety concerns. In October 2023, Cruise suspended its driverless operations following a pedestrian crash in San Francisco, resulting in a $1.5 million fine from the National Highway Traffic Safety Administration (NHTSA). Despite attempting to restart supervised autonomous driving in Phoenix and expanding to cities like Dallas and Houston, GM’s confidence in Cruise’s future waned. In July, the company announced its decision to indefinitely delay the production of Origin autonomous vehicles (AVs).The Robotaxi Market: A Nascent but Lucrative IndustryRobotaxis are among the most interesting technological innovations we are currently witnessing. Per MarketsandMarkets, the global robotaxi market is projected to grow exponentially, from $400 million in 2023 to $45.7 billion by 2030, at an impressive compound annual growth rate (CAGR) of 91.8%. North America alone is expected to account for $13.3 billion of the market by the end of the decade, representing a CAGR of 97.6% during the 2023-2030 period. With such immense potential, companies are vying for dominance in this transformative sector.However, the road to success is fraught with challenges. High development costs, stringent regulations and public safety concerns continue to hinder widespread adoption. GM’s withdrawal underscores the difficulty of scaling a robotaxi business, even for established automakers. As the market matures, companies with deep pockets, strong technical capabilities, and strategic partnerships are likely to emerge as winners.Waymo Leads the Robotaxi SpaceAlphabet’s Waymo is the clear leader in the U.S. robotaxi space. Waymo, a subsidiary of Google parent Alphabet, has achieved significant milestones in the AV industry. With a commercial robotaxi service operating in major metropolitan areas like San Francisco, Phoenix and Los Angeles, Waymo is well ahead of its competitors. The company recently secured a $5.6 billion funding round—its largest to date—bringing its total capital raised to over $11 billion.Waymo has partnered with Hyundai to integrate the Ioniq 5 electric vehicle into its fleet and is expanding its robotaxi service to cities like Miami and Austin. Impressively, its autonomous vehicles have logged over 20 billion miles in combined real-world and simulated testing, ensuring robust software capabilities. Currently, Waymo conducts more than 100,000 weekly trips for passengers via its Waymo One app. With Alphabet’s commitment to invest $5 billion in the coming years, Waymo is poised to cement its dominance in the robotaxi market.Tesla’s Entry Could Reshape the LandscapeWhile Waymo has established a commanding lead, Tesla is gearing up to challenge its supremacy. Tesla CEO Elon Musk has ambitious plans to launch a self-driving ride-hailing service in California and Texas by 2025, pending regulatory approvals. Tesla’s Full Self-Driving software, currently in a supervised capacity, is expected to transition to unsupervised operation in select states.Musk also teased the development of a $30,000 autonomous Cybercab, a two-seater vehicle without steering wheels or pedals, targeting a 2026 launch. Tesla’s strategy to leverage its existing customer base and over-the-air software updates could provide a competitive edge in scaling its autonomous services quickly. Additionally, regulatory changes under a potential Trump administration could ease bureaucratic hurdles, giving Tesla a smoother path to deploying its robotaxi fleet.TSLA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Other Players in the Robotaxi RaceSeveral other companies are striving to make their mark in the robotaxi industry. Amazon’s  subsidiary Zoox is testing custom-built autonomous vehicles without steering wheels in cities like San Francisco and Las Vegas. Mobileye and Volkswagen are working together to deploy robotaxis, and anticipate the first commercial service to begin sometime in 2026.Internationally, China’s Baidu is making strides with its Apollo Go platform, which operates in over 10 cities and aims to deploy 1,000 robotaxis in Wuhan by year-end. Baidu is the first to offer fully driverless services in Beijing, Wuhan, Shenzhen and Chongqing. The company’s sixth-generation robotaxi costs half as much as its predecessor, bringing the company closer to profitability by 2025.Final ThoughtsWith GM stepping back, the robotaxi spotlight is firmly on Waymo and Tesla. Waymo, with its years of experience, extensive testing and strategic partnerships, stands as the clear frontrunner, already offering commercial services in multiple cities. On the other hand, Tesla’s bold vision, coupled with its ability to leverage existing technology and scale quickly, presents a formidable challenge as it prepares to enter the market.The coming years will reveal whether Tesla can disrupt Waymo’s dominance or if other emerging players can carve out their share of this burgeoning market. One thing is certain—this robotaxi face-off is just getting started.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks