Robotaxis expand as companies like Tesla and Hertz invest

What happened: Amazon's Zoox revealed an upgraded robotaxi with improved rider features, set for wider U.S. rollout this year. Tesla's robotaxi fleet in Texas trails competitors like Waymo and Nuro, with only 69 vehicles. Meanwhile, Uber and WeRide plan to launch robotaxi services in Zurich later this year. Mobileye, an Intel company, announced plans to launch its own U.S. robotaxi service in 2023. Uber has invested nearly $500 million in self-driving startup Nuro. Tesla expanded its unsupervised robotaxi service in Austin, Texas.

Market impact: The robotaxi market is expanding, with major players like Amazon, Tesla, Uber, and Mobileye investing and launching services. This drives growth in autonomous vehicle technology and ride-hailing platforms. Companies like Alphabet, Uber, and Tesla benefit from increased demand and investment in robotaxis. The market for AI stocks, particularly those exposed to robotaxi and autonomous vehicle technology, like Alphabet and Nvidia, is also boosted.

What to watch next: On June 28, Uber reports Q2 earnings, which could provide updates on its robotaxi initiatives. On July 26, Tesla reports Q2 earnings, potentially offering more details on its robotaxi expansion. Additionally, monitor regulatory decisions and approvals for autonomous vehicle services in major cities worldwide.