Tesla's Robotaxi Dream Is Here--But Alphabet May Have Already Won the Race
Tesla (NASDAQ:TSLA) just kicked off its robotaxi experiment in Austin. The service runs a handful of Model Y SUVs between 6 a.m. and midnight, priced at just $4.20 per ride. These cars are outfitted with Tesla's latest full-self-driving software, but each one still has a company employee riding shotgun. It's a soft launch, in a small area, for a few handpicked riders. The bigger promisethe Cybercab that Elon Musk unveiled in 2023isn't expected until 2026. Yet, this early-stage rollout sits under a $1.1 trillion market cap and a forward P/E of roughly 150, according to FactSet. For context: that's more than the combined value of the next 20 automakers. RBC's Tom Narayan believes robotaxis account for about 60% of Tesla's valuation. In other words, this bet matters.
Warning! GuruFocus has detected 6 Warning Sign with META.
But while Tesla grabs headlines, WaymoAlphabet's (NASDAQ:GOOG) self-driving armis already operating in five cities, including a new launch in Atlanta. Its 1,500-vehicle fleet is real, driverless, and growing. A new Arizona plant is set to more than double that by end of next year. Waymo raised $5.6 billion last year at a $45 billion valuation, but analysts are getting more bullish. Raymond James' Josh Beck now pegs Waymo closer to $150 billion, citing a base-case of 129% compound annual growth in gross bookings over five years. A recent Uber partnership could push those numbers even higher. The market might still be fixated on Tesla's bold visionbut Waymo's quietly building a commercial robotaxi empire.
Tesla's edge? Its bet on software. Musk is aiming to transform existing Teslas into money-making robotaxis with a simple updateno Lidar, just cameras. It's a cheaper approach, but not without issues. Sunlight glare, social media footage of driving errors, and early questions from regulators have already surfaced. And at $4.20 per ride, the economics don't yet impress. Waymo, meanwhile, is logging real miles, real data, and real revenue. Investors chasing the next big thing might want to look again. Because the under-the-radar AI moonshot may not be Teslait might be hiding inside Alphabet.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
33 minutes ago
- Bloomberg
Elon Musk Says First Tesla Drove Itself From Factory to Customer
Tesla Inc. Chief Executive Officer Elon Musk said a Tesla Model Y SUV drove itself from the company's factory near Austin to a customer's home in the company's latest move to showcase its push into autonomous driving. In a post on X, Musk announced the company had made an autonomous delivery of a Tesla Model Y from factory to a customer's home, noting the delivery was made 'across town,' and included highways. Musk said the delivery did not include anyone in the car and no remote operators were in control of the car.
Business Wire
37 minutes ago
- Business Wire
Cantor Equity Partners III, Inc. Announces Closing of $276 Million Initial Public Offering
NEW YORK--(BUSINESS WIRE)--Cantor Equity Partners III, Inc. (Nasdaq: CAEP) (the 'Company') announced today that it closed its initial public offering of 27,600,000 Class A ordinary shares at $10.00 per share, which was upsized, including 3,600,000 Class A ordinary shares issued pursuant to the full exercise by the underwriters of their over-allotment option. The shares began trading on the Nasdaq Global Market under the symbol 'CAEP' on June 26, 2025. Of the proceeds received from the consummation of the initial public offering and a simultaneous private placement of shares, $276,000,000 was placed into the Company's trust account. An audited balance sheet of the Company as of June 27, 2025, reflecting receipt of the proceeds from the consummation of the initial public offering and such private placement, will be included as an exhibit to a Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission. Cantor Fitzgerald & Co. acted as the sole book-running manager for the offering. About Cantor Equity Partners III, Inc. Cantor Equity Partners III, Inc. is a blank check company sponsored by Cantor Fitzgerald and led by Chairman and Chief Executive Officer Brandon Lutnick. Cantor Equity Partners III, Inc. was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company's efforts to identify a prospective target business will not be limited to a particular industry or geographic region, but the Company intends to focus on a target in an industry where it believes the Company's management teams' and affiliates' expertise will provide the Company with a competitive advantage, including the financial services, digital assets, healthcare, real estate services, technology and software industries. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission (the 'SEC') on June 25, 2025. The offering has been made only by means of a prospectus, copies of which may be obtained by contacting Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor New York, New York 10022; Email: prospectus@ Copies of the registration statement can be accessed through the SEC's website at This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Forward-Looking Statements This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, including with respect to the anticipated use of the net proceeds of the offering as described in the offering prospectus, are subject to risks and uncertainties, including those set forth in the Risk Factors section of the Company's registration statement and prospectus for the offering filed with the SEC, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Yahoo
39 minutes ago
- Yahoo
Portman Ridge Finance Corporation Announces Shareholder Approval of Merger with Logan Ridge Finance Corporation
NEW YORK, June 27, 2025 (GLOBE NEWSWIRE) -- Portman Ridge Finance Corporation (NASDAQ: PTMN) ('Portman Ridge' or 'PTMN') announced today that it obtained shareholder approval for the issuance of PTMN common stock in connection with the proposed merger of Logan Ridge Finance Corporation (NASDAQ: LRFC) ('Logan Ridge' or 'LRFC') with and into PTMN (the 'Share Issuance Proposal') following the adjourned special meeting of shareholders held on June 27, 2025. PTMN shareholders voted overwhelmingly in favor of the proposed transaction, with approximately 88% of voting shareholders supporting the proposal. Of note, on June 20, 2025, LRFC stockholders approved the merger with PTMN. Thus, subject to the satisfaction of customary closing conditions, the merger is expected to close on or about July 15, 2025. Ted Goldthorpe, President and Chief Executive Officer of PTMN and LRFC and Head of the BC Partners Credit Platform, stated, 'We would like to thank our shareholders for their strong support of the merger with LRFC. Their vote affirms the strategic vision behind this combination and supports our efforts to create a larger, more efficient platform that is better positioned for long-term growth. Upon closing, we look forward to rebranding the combined company as BCP Investment Corporation to reflect the Company's affiliation with the broader BC Partners Credit Platform. Additionally, we are proud to introduce a monthly distribution framework, and implement a robust share repurchase initiative, all designed to enhance shareholder value and align interests across the platform. We are excited about the opportunities ahead and remain committed to delivering compelling risk-adjusted returns for our shareholders.' Merger Related Terms Pre-closing: Shareholders of LRFC will receive 1.50 newly issued shares of PTMN common stock in exchange for each share of common stock of LRFC. Upon the closing of the merger: Portman Ridge will rebrand and begin operating under the name BCP Investment Corporation (the 'Company' or 'BCIC'). In connection with the rebranding, the Company will continue to trade on the Nasdaq under the new ticker symbol 'BCIC'. Beginning in 2026: The Company will transition to paying its currently quarterly base distribution on a monthly basis, while retaining the potential for quarterly supplemental distributions. The quarterly supplemental distributions will continue to approximate 50% of the incremental net investment income earned in excess of the base monthly distributions. Over the next 24 months: To further align our interests with shareholders and drive additional value creation, the Company, along with its management, its adviser and their affiliates intend to acquire up to 20% of the Company's outstanding common stock to the extent the Company's shares continue to trade below 80% of net asset value ('NAV'), which implies a share price of $15.08 based Portman Ridge's March 31, 2025 NAV per share, or approximately a 20% premium to PTMN's June 26, 2025 closing market price. These purchases will begin no earlier than 60 calendar days following the date of the closing of the LRFC merger and may occur through various methods, including open market purchases and privately negotiated transactions, and may be conducted pursuant to Rule 10b5-1 and Rule 10b-18 trading plans. In this regard and as previously announced, PTMN's Board of Directors has authorized an open market stock repurchase program of up to $10 million for the period from March 12, 2025 to March 31, 2026. The Company, its management and its adviser also reserve the right to conduct tender offers as part of the Company's broader value creation initiatives. About Portman Ridge Finance Corporation PTMN is a publicly traded, externally managed closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. PTMN's middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. PTMN's investment activities are managed by its investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors L.P. PTMN's filings with the Securities and Exchange Commission ('SEC'), earnings releases, press releases and other financial, operational and governance information are available on Portman Ridge's website at About Logan Ridge Finance Corporation LRFC is a business development company (a 'BDC') that invests primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle-market companies. LRFC invests in performing, well-established middle-market businesses that operate across a wide range of industries. It employs fundamental credit analysis, targeting investments in businesses with relatively low levels of cyclicality and operating risk. For more information, visit About BC Partners Advisors L.P. and BC Partners CreditBC Partners Advisors L.P. ('BC Partners') is a leading international investment firm in private equity, private credit and real estate strategies. Established in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners executives operate across markets as an integrated team through the firm's offices in North America and Europe. For more information, please visit BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across sectors, leveraging the deal sourcing and infrastructure made available from BC Partners. Cautionary Statement Regarding Forward-Looking Statements Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to future operating results and distribution projections of the Company; business prospects of the Company, and future share repurchase/purchase activity. In addition, words such as 'anticipate,' 'believe,' 'expect,' 'seek,' 'plan,' 'should,' 'estimate,' 'project' and 'intend' indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this communication involve risks and uncertainties. More information on the risks and other potential factors that could affect these forward-looking statements is included in Registration Statement and Joint Proxy Statement (in each case, as defined below). Although PTMN and LRFC undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that PTMN and LRFC in the future may file with the SEC, including the Registration Statement and Joint Proxy Statement, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Contacts:Portman Ridge Finance Corporation650 Madison Avenue, 3rd floorNew York, NY 10022 Brandon SatorenChief Financial (212) 891-2880 The Equity Group Catilcati@ (212) 836-9611 Val Ferrarovferraro@ (212) 836-9633
