Back to top

Image: Bigstock

Alphabet Stock Continues to Rise on Urban Mobility Innovation

Read MoreHide Full Article

Key Takeaways

  • Waymo wins approval to test autonomous vehicles on New York City streets for the first time.
  • Alphabet shares rose 6% after the permit, marking progress in its driverless mobility push.
  • The program allows up to eight Jaguar I-Pace SUVs to operate under city safety regulations.

In a landmark move that brings to fruition its dream of bringing driverless mobility to one of the world’s most challenging urban landscapes, Waymo, the autonomous vehicle subsidiary of Alphabet Inc. (GOOGL - Free Report) , has received its first-ever permit to test self-driving cars on the streets of New York City. The approval, granted by the city’s Department of Transportation on Aug. 22, 2025, marks a historic milestone in the evolution of urban transportation. GOOGL, which is part of the Zacks Internet – Services industry, currently carries a Zacks #3 (Hold). The stock closed at $199.75 on Aug. 21. In the week since, it has grown 6% as of Aug. 28.

Under the pilot program, Waymo is permitted to deploy up to eight autonomous vehicles, specifically Jaguar I-Pace electric SUVs. These tests are in compliance with the city’s Taxi and Limousine Commission regulations. City officials emphasized that the approval stems from a newly established regulatory framework designed to support responsible innovation while ensuring street-level safety. Mayor Eric Adams highlighted New York’s commitment to technological progress, stating, “We’re a tech-friendly administration and we’re always looking for innovative ways to safely move our city forward. This testing is only the first step in moving our city further into the 21st century.”

Still, New York’s vehicular landscape poses significant challenges. Observers point to the city’s dense traffic, complicated street grids, congested bridges and extreme winter weather, factors that make it among the toughest platforms for autonomous technology. There are also concerns regarding infrastructure readiness, such as charging stations, vehicle upkeep and coordination with local responders, as well as the potential economic impact on the city’s traditional taxi workforce.

This testing phase follows prior efforts by Waymo to familiarize itself with New York’s streets, notably its 2021 manual data-gathering operations in the city. But now, Waymo’s entry into NYC represents a tangible step toward one day offering commercial autonomous rides to its 8.5 million residents.

Amazon.com, Inc. (AMZN - Free Report) subsidiary Zoox and Tesla, Inc. (TSLA - Free Report) are Waymo’s competitors from the same space. AMZN currently has a Zacks #3 (Hold) and TSLA carries a #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Tesla, Inc. (TSLA) - free report >>

Alphabet Inc. (GOOGL) - free report >>

Published in