Amazon's Zoox Expands Robotaxi Testing as Tesla Struggles

Zoox plans to expand testing to new cities, while Tesla falls behind on its robotaxi promises.

Apr. 1, 2026 at 5:51pm

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Amazon's self-driving car unit Zoox announced plans to expand testing of its purpose-built robotaxis to new markets like Miami and Las Vegas, as Tesla appears to be falling behind on its own robotaxi ambitions. While Tesla had predicted its robotaxi program would serve half the U.S. population by the end of 2025, the company has now scaled back that target to just one-quarter to half of the population by the end of this year, pending regulatory approval.

Why it matters

Tesla's future growth and stock performance are increasingly tied to the success of its autonomous driving technology and robotaxi program. As Amazon's Zoox expands rapidly, Tesla's struggles in this area could weigh heavily on the company's valuation and long-term prospects.

The details

Zoox, Amazon's self-driving car unit, announced plans to begin testing its purpose-built robotaxis in Miami and Austin as part of a broader coast-to-coast expansion. Zoox's robotaxis feature sliding doors, seats that face each other, and no traditional controls like a steering wheel or pedals. Meanwhile, Tesla has had to scale back its own robotaxi timeline, now expecting to cover only one-quarter to half of the U.S. population by the end of 2023, down from CEO Elon Musk's previous prediction of serving half the population by the end of 2025. Tesla's own data has also shown its robotaxis performing significantly worse than human drivers, with a much higher crash rate than competitor Waymo.

  • Zoox has been testing vehicles in Austin and Miami since mid-2024.
  • Zoox plans to more than double the locations it serves in Las Vegas, adding the convention center and a majority of hotels along the Vegas Strip.
  • Zoox also plans to add service to and from Harry Reid International Airport in Las Vegas, which served roughly 55 million passengers last year.
  • Tesla plans to expand its driverless ride-hailing service to seven additional cities in the first half of 2026, including Dallas, Las Vegas, and Miami.

The players

Zoox

Amazon's self-driving car unit that is expanding testing of its purpose-built robotaxis to new markets.

Tesla

The electric vehicle maker that is struggling to meet its ambitious robotaxi timeline and has seen its autonomous driving technology perform worse than human drivers.

Aicha Evans

The CEO of Zoox.

Elon Musk

The CEO of Tesla.

Waymo

A competitor to Tesla in the autonomous driving space, with a lower crash rate for its technology.

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What they’re saying

“This expansion marks a significant step forward for Zoox and is driven by insights from our early deployments.”

— Aicha Evans, CEO of Zoox

What’s next

Tesla plans to expand its driverless ride-hailing service to seven additional cities in the first half of 2026, including Dallas, Las Vegas, and Miami.

The takeaway

As Amazon's Zoox rapidly expands its robotaxi testing and deployment, Tesla's struggles in this key future business area could significantly impact the company's valuation and long-term prospects. Tesla needs to catch up quickly in autonomous driving technology to avoid falling behind competitors.