Market Overview

Google Shifting Away From Self-Driving Car: Good News For Tesla?

Google Shifting Away From Self-Driving Car: Good News For Tesla?

It shouldn't be brushed off as a coincidence that shares of Tesla Motors Inc (NASDAQ: TSLA) gained more than 4 percent following a report that Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) will no longer develop its own self-driving car.

The Information reported that Alphabet's Google unit shifted its strategy from developing its own autonomous vehicle and will now seek partnerships with existing car makers to maintain a presence in the space.

Tesla is among a small handful list of companies that are active in the autonomous driving space and is considered by some analysts to be the current winner. Needless to say, Google's seemingly unlimited resources and cash hoard by default makes it a rival that can never go away - unless they themselves call it quits.

Even if Google is no longer manufacturing a self-driving car, it's looking to remain a dominant player in the space. For instance, Google is likely working an autonomous taxi service, officers carpooling through its Waze business.

TechCrunch added that Google is hosting a media event to showcase its self-driving car business next Tuesday and more information on what the company is doing (and what it isn't) should be made more clear.

Update: Just after 12 p.m. ET, TechCrunch reported that Google is spinning out its self-driving car unit as a separate company called Waymo:

“We’re now an independent company within the Alphabet umbrella,” Waymo CEO Jon Krafcik told an audience at a press event in California.


Related Articles (GOOG + GOOGL)

View Comments and Join the Discussion!

Posted-In: Autonomous Cars Google Self Driving Car Self Driving Cars techcrunchNews Rumors Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at