Robotaxi Wars Heat Up: Waymo Eyes Expanding Into Northeast US Cities Weeks After Tesla's Cybercab Debut

Alphabet’s Waymo has begun testing its autonomous vehicle technology in Philadelphia, marking its latest step toward expanding robotaxi services nationwide amid intensifying competition with Tesla, which is racing to commercialize its Cybercab platform.

Waymo told CNBC that its vehicles will initially be driven by humans through the city’s more challenging areas, such as downtown and freeways, to gather mapping data and test how its Waymo Driver system performs in unfamiliar environments. 

The testing will continue through the fall, with cars visible across neighborhoods from North Central and Eastwick to University City and the Delaware River. “This city is a National Treasure,” Waymo posted on X. “Our road trip continues to Philly next.”

The move follows Waymo’s recent expansion into New York, where it applied for a permit to operate in Manhattan with safety drivers on board. Fully autonomous operations remain restricted under current state law.

Waymo currently provides more than 250,000 paid rides each week via Waymo One in Phoenix, San Francisco, Los Angeles, and Austin, with plans to launch in Atlanta, Miami, and Washington, D.C. by 2026.

Meanwhile, Tesla is accelerating its own robotaxi ambitions. Last month, CEO Elon Musk said the company may reach a 3:1 ratio of autonomous vehicles to human supervisors “within a month or two,” a level some analysts see as a key benchmark for profitability.

Musk’s comments followed Tesla's showcase of its robotaxi technology in Austin, as well as its fully autonomous delivery of a Model Y, without a driver or remote operator, from a factory to a customer’s home.

Analysts at Benchmark have described Tesla’s rollout as “controlled and safety-first,” suggesting that the company’s camera-based approach could potentially outpace Waymo’s sensor-heavy system.

Some Tesla investors believe the robotaxi platform could unlock high-margin revenue and bolster the company’s AI-driven valuation, while others remain cautious about the challenges of scaling and regulatory hurdles.

Waymo, part of Alphabet’s “Other Bets” unit, generated $1.65 billion in revenue in 2024 but reported a $4.44 billion loss as the company ramps spending on infrastructure and autonomy.

On Stocktwits, retail sentiment for both Tesla and Alphabet was ‘bearish’ late Monday, with ‘high’ message volume for Tesla and ‘low’ volume for Alphabet.

While Tesla’s stock has declined 22.5% so far in 2025, Alphabet’s stock fell 6.9% over the same period.

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