In recent years, the rise of robotaxis in cities like San Francisco has really re-shaped how investors think about the ride-hailing and food delivery sectors. Indeed, cars that can drive themselves could open up a range of possibilities for a wide range of companies in a number of sectors. This is going to be a massive market opportunity that companies like Tesla (NASDAQ:TSLA) are certainly looking to ride moving forward.

With a new Trump administration heading into office in 2025, expectations that Tesla’s “Full Self Driving” technology could be approved for robotaxi service in key markets have improved. This is a key piece of the company’s incredible valuation (relative to other auto companies), and is integral to long-term growth investors’ view that Tesla can continue to grow at a rate that’s much faster than the overall market.

However, Tesla isn’t the only player in this sector which could see a boost from an improved regulatory environment. Plenty of competition is likely to be seen in this space, if the companies involved can produce the kinds of profits Wall Street expects to see.

Let’s dive into three stocks in this space that may be worth a look, for investors who believe that previous regulatory hurdles could be going away sooner than later in this space.

Key Points About This Article:

• Expectations are improving for companies involved in providing robotaxi services, as a new Trump Administration looks to set up federal regulations for autonomous vehicles.
• Here’s a look at three of the top stocks in this space that could see a major boost from the new administration in 2025.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Tesla (TSLA)

In October, Elon Musk introduced Tesla’s (NASDAQ:TSLA) Cybercab to the market in a highly-anticipated “We, Robot” event. This robotaxi model will reportedly be priced under $30,000 (though we’ll have to see what the ultimate price tag works out to be), and is expected to be a much more important piece of Tesla’s overall revenue streams in the future, if the company can mass produce these vehicles at their stated cost and the Trump administration does in fact move to push robotaxi-friendly legislation forward.

Given that these vehicles are still very much in their concept stage, there’s plenty of reason for the market to remain skeptical around Tesla’s ability to capture market share in this sector, which already has a number of incumbents operating vehicles in markets across the country.  That said, with production slated for 2026 or early 2027, there is a catalyst ahead that investors are clearly pricing into this stock. While these production timelines may indeed be optimistic (Tesla has often missed its production target release dates in the past), any sort of catalyst for an Elon Musk-led company is likely to be taken seriously, and this one is no different.

Among the key reasons why many investors are factoring this new business line into their valuation models for Tesla has to do with reports that Tesla was recently seen testing its Cybercab robotaxi near Gigafactory Texas. Leveraging the state’s relaxed autonomous vehicle regulations, the company will likely pursue operations in markets like Texas first, with the permitting process likely to remain a pain point over time in other key markets competitors currently operate in. We’ll have to see how the company progresses on this front, but with FSD capabilities currently available for a significant portion of Tesla’s overall fleet, it could be possible that the company generates revenue from its “autonomous vehicles” sooner than expected.

Alphabet (GOOG)

Alphabet’s (NASDAQ:GOOG) Waymo is among the chief leaders in the autonomous driving and robotaxi space, having some of the most robust autonomous tech in the sector. The company’s fleet currently includes more than 700 vehicles, primarily Jaguar and Zeekr models. However, in October, Waymo announced plans to integrate Hyundai’s IONIQ 5 SUVs into its robotaxi fleet, expanding the range of vehicles available to users and furthering the company’s shift toward becoming a long-term leader in this space. 

This collaboration speaks to Waymo’s focus on becoming the ubiquitous choice for riders in its key markets, and I have to admit, the videos I’ve seen of Waymo’s services are truly incredible. If the company is able to attain a greater number of permits to operate in new markets, Alphabet could be a company growth investors hone in on once again with additional growth drivers outside of its core Cloud and Search businesses that could carry more of the load.

Indeed, Alphabet is a top growth stock to consider with a very diverse business model and a number of revenue streams that makes this company a top pick of mine in general. However, the company’s push to make Waymo a leader in the robotaxi and ride-hailing space certainly makes this stock even more compelling. With Waymo opening its Los Angeles service to all users less than a year after launching its waitlist in 2023, Alphabet is a mega-cap tech giant with one more catalyst investors will certainly want to watch closely. 

Uber Technologies (UBER)

Last, but certainly not least, it’s impossible to discuss the robotaxi and ride-hailing space without addressing Uber (NASDAQ:UBER). The ride-hailing giant has largely benefited from Tesla’s missteps in the past, with its shares rising 5% after Tesla’s Cybercab unveiling failed to impress a number of investors and attendees. After Tesla’s “We, Robot” event, investors appeared to breathe a collective sigh of relief, with some speculating heading into the event that Tesla could completely upend this industry. It appears that any disruption may still be a few years out, and Uber’s stock price has certainly reflected the idea that this company’s dominant position in the ride-hailing sector could certainly drive plenty of shareholder value even in a more competitive world.

That’s partly due to the fact that Uber hasn’t sat on its hands at all when it comes to addressing potential issues. Uber has a number of long-term partnership deals with autonomous vehicle companies in key markets the company hopes will pave the way for greater upside in an autonomous ride-hailing future. We’ll have to see if a deal is struck with Tesla, Waymo or other key players over time. But it’s clear that Uber’s core network remains the pivotal asset investors are focused on right now, and positions the company well for future gains when we do see an autonomous vehicle revolution take hold. 

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