Amazon (AMZN) has ordered a software recall for its Zoox self-driving robotaxis following a recent crash in Las Vegas, Nevada.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The technology giant and leading e-commerce company says it has issued a software recall for 270 of its self-driving vehicles after a crash occurred in Las Vegas during April. The recall concerns a defect with the robotaxis automated driving system that could cause it to inaccurately predict the movements of other vehicles.
In a a report submitted to the National Highway Traffic Safety Administration, Amazon said that the software glitch could increase “the risk of a crash” in certain instances. Zoox is Amazon’s autonomous vehicle unit. The crash last month was widely viewed as a major setback for Amazon, which was planning to commercialize its robotaxi business and begin offering rides to the public this year.
Las Vegas Crash
Amazon submitted the voluntary recall to the National Highway Traffic Safety Administration after an April 8 incident in Las Vegas where an unoccupied Zoox robotaxi collided with another vehicle. There were no injuries reported but Amazon paused all driverless vehicle operations to conduct a thorough internal review, and has now gone ahead with a software recall.
Zoox was purchased by Amazon for $1.3 billion in 2020. The unit has been testing its self-driving robotaxis on public roads since 2023. Zoox is currently testing the vehicles, which do not include manual controls such as a steering wheel or brake pedals, in three cities: Las Vegas; San Francisco; and Foster City, California. AMZN stock has declined 16% this year.
Is AMZN Stock a Buy?
The stock of Amazon has a consensus Strong Buy rating among 50 Wall Street analysts. That rating is based on 49 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $241.87 implies 30.68% upside from current levels.
