News
Waymo kicks off initial tests in Japan with launch event
Waymo launches early tests in Japan, as Tesla and others look to roll out their own commercial robotaxi services.
Commercial robotaxi company Waymo held a launch event in Japan last week, as the company prepares to enter early manual testing on its first international roads.
After Waymo shared plans to start testing vehicles in Japan in December, the Google-owned firm detailed the launch event in a press release on Monday. The event featured officials from project partners GO, a taxi platform, and Nihon Kotsu, the largest taxi company in Tokyo, along with featuring one of the company’s camera-, lidar-, and radar-outfitted Jaguar I-Pace units, expected to begin manual testing around Tokyo in the weeks to come.
Ichiro Kawanabe, Board Director at Nihon Kotsu and Chairman at both GO and the Japan Taxi Association, said that Waymo’s U.S. operations “demonstrated significant safety benefits,” along with thanking the company for hosting the event at the newly developed Takanawa Gateway City complex.
“I took my first ride with Waymo in Phoenix a year and a half ago and was amazed that there was really no one in the driver’s seat,” the chairman said. “That was the moment I was convinced that autonomous driving technology could absolutely benefit Japan. It will help ensure mobility service in the future of Japan, with the growing aging population and labor shortage.”
Credit: Waymo
Credit: Waymo
This spring, Nihon Kotsu taxi operators will start driving Waymo vehicles across several Tokyo wards this spring, including Chiyoda, Chūō, Kōtō, Minato, Shibuya, Shinagawa, and Shinjuku. The tests will utilize 3D maps of the city, along with utilizing experienced drivers to generate data about traffic laws, patterns, and other road systems ahead of fully autonomous operation.
“After months of strong collaboration with Nihon Kotsu and GO, Waymo has reached a historic milestone— our first venture on international public roads,” said Nicole Gavel, Waymo Senior Director and Head of Business Development and Strategic Partnerships.
“Our partnership demonstrates how Waymo’s 15 years of operational expertise can adapt to new environments through strategic initiatives with industry leaders,” Gavel adds. “In Tokyo, we are abiding by the same steadfast principles that guide us in the U.S. — commitment to safety, dedication to earning trust in communities where we operate, and collaboration with local officials and community groups here in Tokyo.”
The news comes as Tesla, Amazon-owned firm Zoox, and still others are racing to enter the commercial robotaxi business throughout this year. It also comes amidst widespread speculation and debate about the emerging market, and as Tesla and Waymo both aim to begin operations internationally.
READ MORE ON WAYMO: Waymo study analyzes collisions with vulnerable road users
Tesla’s FSD in China, Mexico, commercial robotaxis still incoming
Waymo is already operating paid autonomous ride-hailing services around the U.S., and it said in December that it was giving more than 200,000 autonomous rides per week.
The company currently offers Waymo services in San Francisco and Los Angeles, California, Phoenix, Arizona, and, through a partnership with Uber, in Austin, Texas, where Tesla has a Gigafactory and plans to launch initial robotaxi services. The Alphabet-owned company is also aiming to launch services in Atlanta, Georgia and Miami, Florida this year, alongside its early tests in Tokyo.
Although Tesla doesn’t currently operate driverless ride-hailing in any capacity, individual owners in North America can purchase or subscribe to its Supervised Full Self-Driving (FSD) system, on which the company’s forthcoming robotaxi platform will be based. In October, the company unveiled the two-seat Cybercab vehicle, which has no steering wheel or pedals and will be used for the upcoming commercial robotaxi system.
Additionally, the company is aiming to launch its first unsupervised rides commercially in Austin in June, and it recently debuted Supervised FSD in China and Mexico, marking the company’s first international markets.
🎥: Our FULL first ride in the @Tesla Cybercab pic.twitter.com/6gR7OgKRCz
— TESLARATI (@Teslarati) October 11, 2024
Waymo vs. Tesla vs. the competition
While Tesla hasn’t quite gotten a commercial robotaxi service to market yet, Waymo, Amazon-owned company Zoox, and still many others have begun their own paid ride-hailing services or early tests. Meanwhile, Tesla’s approach to the technology is vastly different than that of Waymo and others, utilizing a camera-only, AI-trained neural network system, rather than 3D geomapping.
For one, the company can generate a larger pool of training data from real-time driving behavior of its individual owners, for instance as compared to Waymo’s use of a more-limited fleet of taxi drivers. Many argue that this, along with the cost-effectiveness of producing a system that’s built into every vehicle and utilizes only cameras, make the system more scalable than those of Waymo and others.
Still, some support the use of more than just camera systems and building in sensor redundancy as a way to maximize safety, especially as the technologies are still fairly new. Former Waymo CEO John Krafcik, who was a part of the company until 2021, criticized the FSD system in December for not including enough safety measures to support a realistic commercial robotaxi business, and he went on to call Tesla “a car company with a driver-assist system.”
“If a company were serious about building a safe and accessible robotaxi business, it would look nothing like what was shown,” Krafcik said during an interview. “The cost of a robust sensor set, including lidar, is trivial on a per-mile basis. Even more so for mapping. And the safety benefits measured in human harm reduction are real and verifiable.”
Waymo valued at over $45 billion following latest financing round: report
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Elon Musk claps back at France’s Tesla Full Self-Driving approval delay
Google’s massive stake in SpaceX will shock you
