Elon Musk agreed with a meme mocking the sensor-heavy appearance of Alphabet Inc.-owned Waymo’s robotaxis compared with Tesla Inc.’s Cybercab. His response on X highlighted the intensifying competition between the two autonomous-driving approaches.

Musk’s Response to Meme Revives Robotaxi Sensor Debate

The meme juxtaposed a sharply dressed figure with another covered in cameras and equipment, captioned "Hi I’m a Cybercab" and "And I’m a Waymo." Reacting to the post on X, Musk wrote, "Pretty much." His response came days after Tesla began limited Cybercab rides in Austin, where the two-seat vehicle operates without a steering wheel or pedals.

The post taps into a long-running divide. Tesla relies primarily on cameras and artificial intelligence, while Waymo’s sixth-generation Driver combines cameras, lidar and radar.

Tesla Says Intelligence Matters More Than Sensors

Tesla AI chief Ashok Elluswamy made the company’s case at the Cybercab launch, saying experts had argued that Tesla "cannot build a safe self-driving vehicle" with just cameras.

"We always thought the core issue for self-driving is one of intelligence," said Elluswamy, adding that "no sensor in the world is going to tell you what is going to happen in the future." Tesla instead built an "AI-first, end-to-end" driving stack using camera imagery.

Musk has repeatedly made the same argument. In July, after Volvo Group dropped Luminar lidar from two electric models, Musk wrote, "I did try to warn them," adding, "Humans drive using neural nets and optical sensors. Same is true for robot cars."

During Tesla’s January 2025 earnings call, Musk reaffirmed his opposition to lidar, arguing that humans drive with "eyes and a neural net" rather than lasers. Tesla also recently touted Cybercab’s "operational efficiency" against Waymo.

Waymo Defends Its Multi-Sensor Safety Approach

Srikanth Thirumalai, Waymo’s vice president of onboard software, recently rejected the idea that extra sensors are unnecessary in an Axios interview. The company’s sixth-generation platform combines cameras, lidar and radar.

Gerber Kawasaki co-founder Ross Gerber advised Tesla Inc. (NASDAQ: TSLA) owners on Monday to refrain from participating in the EV maker’s robotaxi service rollout, urging them to let the company bear the operational risks.

Business Model Analysis

Gerber described CEO Elon Musk’s vision for the Cybercab as a crossover between Airbnb Inc. (NASDAQ: ABNB) and Uber Technologies Inc. (NYSE: UBER). Under this model, Tesla sells vehicles to third-party fleet managers and retains a revenue share for system management.

The investor noted that this structure shifts pricing and operational risks from Tesla to the fleet operators. Gerber stated that Tesla could take a 20%-30% cut from revenue. He added that if ridership is low, the loss falls on the operators, not Tesla.

Risk Trade-offs

While the model lowers capital expenditure requirements for Tesla, Gerber highlighted a trade-off regarding recurring revenue. He noted that Tesla loses potential recurring income by not owning the cabs but avoids the capital outlay needed to scale the fleet.

Warning to Owners

Gerber issued a specific warning to current vehicle owners, citing the legal principle of Caveat Emptor (let the buyer beware). He pointed out that many Tesla owners have already lost equity in their vehicles.

"I recommend letting Tesla take the risk with this rollout... not you," Gerber wrote on X.

Market Context

According to Benzinga Edge Rankings, Tesla scores moderately on growth and quality metrics but shows poor value and momentum. The stock lacks a favorable price trend across short, medium, and long-term horizons.

TSLA shares rose 0.54% to $355.99 during overnight trading.