Amazon (NASDAQ:AMZN | AMZN Price Prediction) subsidiary Zoox is expanding its fully driverless robotaxi service to San Francisco and Las Vegas, according to a Reuters report today, putting it on a direct collision course with Tesla’s autonomous vehicle ambitions in two high-profile markets.
Amazon’s Emerging Threat to Tesla
Zoox has been methodically building its footprint: the unit launched its first fully autonomous ride-hailing service in Las Vegas and has been testing vehicles across multiple U.S. cities. Critically, Zoox operates with no safety driver, while Tesla is only beginning to remove safety monitors as of January 2026. Prediction markets assign just 14.5% probability to Tesla launching robotaxis in California by June 30, underscoring the gap.
Tesla’s Las Vegas expansion is part of its planned H1 2026 Robotaxi rollout, but the competitive timeline is tightening. Tesla shares are trading at $379.68, down 15.31% year-to-date, and analyst conviction is thin: Only 44% of analysts are bullish, with 17 Hold and 8 Sell or Strong Sell ratings. Reddit sentiment on TSLA sits at a bearish 33.37.
What to Keep an Eye On
Meanwhile, Amazon trades at $208.23 with a consensus analyst target of $280.47 and 63 buy ratings against just 4 holds.
Investors should watch whether Tesla can accelerate its driverless transition before Zoox establishes brand recognition in Las Vegas and the Bay Area. A 247 Wall St analysis published today examines a scenario where Tesla’s stock could fall 70% if its autonomous vehicle lead erodes faster than the market expects. The autonomous race is no longer Tesla’s to lose alone.
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