Amazon Just Landed a Big Win in the Race Against Tesla and Waymo

Key Points

Amazon-owned Zoox just received federal approval for up to 2,500 driverless vehicles annually.
It’s the first approval for a purpose-built driverless vehicle with no manual controls.
While Tesla is slowly expanding its driverless rides, it remains restricted without approvals.
10 stocks we like better than Amazon ›

The race to operating fleets of driverless vehicle robotaxis is heating up among a number of significant competitors. Alphabet‘s (NASDAQ: GOOG)(NASDAQ: GOOGL) Waymo has already tallied up more than 220 million fully autonomous miles, rider-only with no supervision. Tesla‘s (NASDAQ: TSLA) Cybercab ambitions are well publicized, even if its driverless programs are only slowly expanding. But it was actually Amazon (NASDAQ: AMZN) that recently landed a big win against its competitors.

Details on Amazon approval

Amazon-owned Zoox was just given temporary permission by the National Highway Traffic Safety Administration (NHTSA) to commercially deploy steering-wheel-free robotaxis, adding pressure to the robotaxi competition. This is significant because the vast majority of competitors, such as Waymo, are modifying traditional passenger cars. The difference is that the Zoox vehicle was developed from the ground up and is produced without manual controls, making it the first purpose-built driverless vehicle to receive approval.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

A group of people take a selfie inside a Zoox vehicle.

Zoox vehicle in Las Vegas. Image source: Amazon.

“We can say pretty clearly that the systems in place on the Zoox exceed the equivalent performance requirements of a compliant vehicle,” said the NHTSA’s Jonathan Morrison regarding the agency granting temporary approval.

Zoox said the NHTSA’s approval gives the company the federal go-ahead to begin charging for rides. Zoox acknowledged it would begin charging for its service in Las Vegas first, with additional markets to follow after various state requirements are met. Zoox’s approval enables the company to commercially deploy up to 2,500 vehicles annually for two years, or a total of 5,000 vehicles.

It’s a big win for Zoox against Waymo and Tesla, which are also racing to expand their autonomous ride-hailing services. While Waymo remains the clear market leader in operating paid fleets in multiple areas, this serves notice that a significant competitor with Amazon’s backing will be a long-term competitor with the ability to scale.

What it all means

For Tesla, it’s a reminder that it still has to get its own approval federally, and without it, its physical fleet will be legally restricted compared to Zoox’s. Currently, Tesla’s robotaxi service is operating unsupervised rides with Model Y vehicles in Austin, Dallas, Houston, Miami, Orlando, and Tampa.

See also <html lang="en"><head> <meta charset="UTF-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>The Role of Emerging Managers in Venture Capital</title></head><body> <h2>Delving into the World of Emerging Venture Capital Managers</h2> <p>Embarking on a journey through the intricate landscape of venture capital, we encounter a dichotomy that pits the seasoned veterans against the up-and-coming newcomers. A recent analysis by Pitchbook delves into the realm of Emerging Managers and their impact on the world of investments. Established managers, with their wealth of experience and proven track records, often bask in the trust of Limited Partners. In contrast, emerging managers, without such historical accolades, rely heavily on forward-thinking narratives and innovative approaches.</p> <p>Like a gust of fresh air in a room long occupied, emerging managers in sectors such as venture capital have displayed a consistent outperformance trend since the late 1990s. However, this path to success is not without its bumps and hurdles, as volatility in returns tends to be higher for emerging managers compared to their established counterparts.</p> <h3>The Trends and Insights Unveiled</h3> <p>Within the realm of venture capital, the period between 2010 and 2019 saw simulations indicating that portfolios managed exclusively by emerging talents yielded a median return higher than those helmed by established figures. The shining stars among the emerging managers stood out boldly, showcasing superior performance compared to their seasoned peers, albeit with a wider spectrum of returns and a touch of unpredictability.</p> <p>Specialization emerges as a critical key to success in the venture capital arena, with specialists consistently outshining generalists across both established and emerging manager categories. The ability to hone in on a specific sector provides an undeniable edge, as founders often gravitate towards sector-focused funds. Such advantages become even more apparent with higher Internal Rates of Return (IRRs) observed among specialist funds in both the top and bottom quartiles.</p> <h3>The Dance of Size and Strategy</h3> <p>For the established guard to maintain their leading positions, periodic evaluations of size and strategy become imperative. Sticking to a familiar market segment and a particular fund size bracket - with funds exceeding $250 million found to offer the most stable returns - holds the key. On the flip side, intentional size restraint among smaller established funds (under $250 million) can lead to significant returns, albeit with a wider performance dispersion.</p> <p>Even giants like Andreessen Horowitz have ventured into new realms, expanding their horizons and fund sizes while exploring different venture stages. While emerging managers have been hailed for their high returns laced with greater volatility, the safety net of established funds remains a comforting thought for Limited Partners, especially when aiming to minimize downside risks.</p> <h2>Monday Market Highlights</h2> <p><strong>General News:</strong></p> <ul> <li>Despite a pullback in LP investments in venture capital, a select cohort of VC firms continues to raise substantial sums. From General Catalyst's $6 billion VC fund to Andreessen Horowitz's $7.2 billion across various strategies, the VC world remains rife with activity.</li> <li>Rappi introduces its new global CFO, Tiago Azevedo, as part of their expansion strategy in LatAm.</li> <li>Brazilian fintech Urbano Bank shines with impressive Q1 results, showcasing robust growth in net revenue, accounts, and TPV.</li> <li>Google for Startups launches an AI acceleration program, nurturing AI startups like Advolve, Beep Saúde, and Merama in Brazil.</li> </ul> <p><strong>Deals:</strong></p> <ul> <li>Brazilian startup Yuna secures R$ 8 million in a pre-seed round, fueling its AI-driven children's content creation platform with backing from notable investors.</li> </ul> </body></html><!DOCTYPE html><html lang="en"><head> <meta charset="UTF-8"> <meta http-equiv="X-UA-Compatible" content="IE=edge"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>Financial News Round-Up</title></head><body> Insights into the Financial Landscape

While it’s fair to say that Tesla CEO Elon Musk has been incorrectly predicting the mass rollout of autonomous vehicles for almost a decade, he isn’t pulling back. In fact, he recently predicted via a video call at the Samson International Smart Mobility Summit in Tel Aviv that “10 years from now probably 90% of all distance driven will be driven by the AI in a self-driving car.”

There’s a lot riding on the driverless vehicle business for long-term Tesla investors. The company’s massive market capitalization is supported by the belief that the company’s transition from a traditional automaker to one that revolves around humanoid robots, robotaxi fleets, and artificial intelligence will grant it a more lucrative future. Currently, Tesla’s robotaxi ambitions seem more hype than reality, and for investors, that’s something that needs to change in the near term. Zoox receiving federal approval and beginning to charge for rides only applies more pressure for Tesla and Waymo.

Should you buy stock in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $395,463!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,268,290!*

Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 211% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of August 5, 2026.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Tesla. The Motley Fool has a disclosure policy.

5 Stocks Our Experts Predict Could Double In the Next Year

By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.

Amazon Just Landed a Big Win in the Race Against Tesla and Waymo

Key Points

Details on Amazon approval

What it all means

Should you buy stock in Amazon right now?

Reach out to us for sponsorship opportunities