Waymo’s self-driving fortunes were set back as protesters set fire to a number of them during the L.A. ICE protests. This was a setback because Los Angeles is the city where the Alphabet Inc. (NASDAQ: GOOGL) division is doing most of its testing. The self-driving taxis handle hundreds of hours of taxi rides each week. Because there may be protests in San Francisco, Waymo taxi activity will be cut there as well.

It is unclear why protestors vandalized the cars. Perhaps they were mistaken for Tesla Inc. (NASDAQ: TSLA) robotaxis. Teslas have been vandalized before, presumably because of Elon Musk’s relationship with President Trump. Either way, the vandalism has set back the pace of the Waymo tests at a time when competition has heated up because Tesla has started self-driving tests in Austin.

The Jaguar I-Pace models being used in the test cost well over $100,000 apiece. The price of the cars is nowhere near as important as the test interruption. Waymo’s suspension of service could last more than a day or two. The company said, “We’re aware of potential protests and will not be providing service in the areas protesters may be gathering out of abundance of caution.” Burning cars cannot be good for Waymo’s image.

Any setback in Waymo’s plans happens as its competition with Tesla becomes more challenging. Self-driving cars are considered the next generation of the auto industry. The first company that gets nationwide approval to roll out its cars will take the lead in what will become a multi-billion-dollar industry.

The primary difference between Waymo and Tesla is that Waymo can license its product to several car companies. The Tesla self-driving feature will only work on its electric vehicles.

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