The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into the performance of Alphabet’s (NASDAQ:GOOGL) Waymo after reports emerged indicating that robotaxis violate traffic safety laws. The U.S. auto regulator initiated this investigation following its preliminary probe into 444 Waymo vehicles, prompted by reports of 22 incidents, including 17 crashes.
Details of the NHTSA Probe
The agency reported that in certain cases, the robotaxis’ automated driving systems disregarded traffic safety control devices, resulting in crashes. Alphabet’s robotaxis were involved in incidents where self-driving vehicles collided with stationary or semi-stationary objects such as gates, chains, and parked vehicles.
The NHTSA also cited incidents such as “vehicles driving in opposing lanes with nearby oncoming traffic or entering construction zones.”
For its part, Waymo did not address specific incidents but emphasized its safety record and commitment to transparency.
Is Google a Buy, Hold, or Sell?
Analysts remain bullish about GOOGL stock, with a Strong Buy consensus rating based on 31 Buys and five Holds. Year-to-date, GOOGL has increased by more than 20%, and the average GOOGL price target of $194.83 implies an upside potential of 15.1% from current levels.
