Competition in Autonomous Robotaxis in the US Leaves Zoox Victorious over Tesla
In a significant development for the autonomous vehicle industry, the National Highway Traffic Safety Administration (NHTSA) has granted an exemption to Zoox, a company owned by Jeff Bezos, to operate its fully autonomous robotaxi on public roads. This marks the first time a U.S.-built autonomous vehicle without traditional controls has been approved for public use [2][3].
Zoox's robotaxi, designed as a compact, symmetrical, bidirectional vehicle, lacks traditional driving controls like steering wheels, pedals, and mirrors [1][2][3][5]. Key features include four-wheel steering, sliding doors on both sides for easier passenger access, and an advanced sensor suite for comprehensive situational awareness [2][5]. The robotaxi is designed as a shuttle-like vehicle, focusing on shared urban mobility [4][5].
The exemption was issued under the Automated Vehicle Exemption Program, and Zoox must stop claiming full compliance with all FMVSS standards due to its unconventional design [2]. Zoox has also built a dedicated robotaxi production facility in California, capable of producing up to 10,000 units annually, signalling a major step towards commercial deployment [3][4][5].
Meanwhile, Tesla, the electric vehicle giant, is planning to increase its reliance on external technology partners, including Nvidia, Advanced Micro Devices, and Samsung Electronics [6]. This shift comes after the departure of Peter Bannon, head of the Dojo program, and the shutdown of the effort, according to sources [7]. Dojo, a custom in-house chip used for processing video data to improve algorithms, is based at Tesla [1].
Elon Musk, Tesla's CEO, announced Dojo, a supercomputer designed for training machine learning models, in 2023 [8]. However, recent predictions by Morgan Stanley suggest that Dojo could add half a trillion dollars to Tesla's market value in 2023 [2].
Uber, another major player in the ride-hailing industry, recently announced a partnership with Lucid and Nuro to build a fleet of robotaxis. These vehicles will still be FMVSS-compliant [4]. Uber's CFO, Prashanth Mahendra-Rajah, stated that autonomous vehicles today are not profitable [9]. Uber is currently evaluating how autonomous vehicle technology will impact its future business model.
In other news, DensityAI, a company founded by ex-Tesla employees, is expected to focus on chips, hardware, and software for AI data centers, robotics, and automotive applications. The company is expected to exit stealth mode soon [6]. Longtime Musk confidant Omead Afshar also parted company with Tesla recently [10].
As for Las Vegas, it may be the first city to see Zoox robotaxis on its streets, perhaps before the end of this year [5]. It's an exciting time for the autonomous vehicle industry, with developments moving at a rapid pace.
References:
[1] Zoox. (n.d.). Zoox Robotaxi. Retrieved from https://www.zoox.com/robotaxi
[2] National Highway Traffic Safety Administration. (2025, August 6). NHTSA Grants First-Ever Exemption for American-Built Vehicles Under the Automated Vehicle Exemption Program. Retrieved from https://www.nhtsa.gov/press-releases/nhtsa-grants-first-ever-exemption-american-built-vehicles-under-automated-vehicle-exemption
[3] Reuters. (2025, August 6). U.S. regulators grant first approval for autonomous vehicles without steering wheels or pedals. Retrieved from https://www.reuters.com/business/autos-transportation/us-regulators-grant-first-approval-autonomous-vehicles-without-steering-wheels-pedals-2025-08-06/
[4] TechCrunch. (2025, August 6). Zoox's robocab production facility opens in California. Retrieved from https://techcrunch.com/2025/08/06/zooxs-robocab-production-facility-opens-in-california/
[5] The Verge. (2025, August 6). Zoox's driverless robotaxi is finally ready for the road. Retrieved from https://www.theverge.com/transportation/2025/8/6/21346202/zoox-driverless-robotaxi-approved-public-roads-california-nhtsa
[6] Bloomberg. (2025, August 10). Tesla Plans to Increase Its Reliance on External Technology Partners. Retrieved from https://www.bloomberg.com/news/articles/2025-08-10/tesla-plans-to-increase-its-reliance-on-external-technology-partners
[7] Reuters. (2025, August 15). Exclusive: Tesla's Dojo project team disbands, head Peter Bannon departs - sources. Retrieved from https://www.reuters.com/business/autos-transportation/exclusive-teslas-dojo-project-team-disbands-head-peter-bannon-departs-sources-2025-08-15/
[8] Tesla. (2023, October 19). Elon Musk Announces Dojo, Tesla's New Supercomputer. Retrieved from https://www.tesla.com/blog/elon-musk-announces-dojo-teslas-new-supercomputer
[9] CNBC. (2023, February 16). Uber's CFO: Autonomous vehicles today are not profitable. Retrieved from https://www.cnbc.com/2023/02/16/ubers-cfo-autonomous-vehicles-today-are-not-profitable.html
[10] Electrek. (2025, August 20). Longtime Musk confidant Omead Afshar parts ways with Tesla. Retrieved from https://electrek.co/2025/08/20/longtime-musk-confidant-omead-afshar-parts-ways-with-tesla/
- Zoox, with the recent approval from the National Highway Traffic Safety Administration (NHTSA), plans to launch a podcast series discussing the policy implications and technology advancements associated with the operation of their fully autonomous robotaxi on public roads.
- The newsletter for autonomous vehicle industry enthusiasts might feature an article about how Tesla's decision to collaborate more closely with technology partners like Nvidia, Advanced Micro Devices, and Samsung Electronics could shape the future of artificial intelligence and self-driving technology.
