It shouldn't be brushed off as a coincidence that shares of Tesla Motors Inc (NASDAQ: TSLA) gained more than 4 percent following a report that Alphabet Inc
(NASDAQ: GOOG) (NASDAQ: GOOGL) will no longer develop its own self-driving car.
The Information reported that
Alphabet's Google unit shifted its strategy from developing its own autonomous vehicle and will now seek partnerships with existing
car makers to maintain a presence in the space.
Tesla is among a small handful list of companies that are active in the autonomous driving space and is considered by some analysts to be the
current winner. Needless to say, Google's seemingly unlimited resources and cash hoard by default makes it a rival that can never
go away - unless they themselves call it quits.
Even if Google is no longer manufacturing a self-driving car, it's looking to remain a dominant player in the space. For
instance, Google is likely working an autonomous taxi service, officers carpooling through its Waze business.
TechCrunch
added that Google is hosting a media event to showcase its self-driving car business next Tuesday and more information on what
the company is doing (and what it isn't) should be made more clear.
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