Amazon-Backed Zoox (AMZN) Expands Self-Driving Tests to Atlanta

Amazon’s (AMZN) self-driving car company Zoox is now testing in Atlanta, Georgia, which is its seventh U.S. city. The company just finished its first step in the area by using regular cars with drivers to map out the roads and traffic lights, and it plans to begin testing its self-driving technology later this summer. Like in other cities, Zoox is being careful with its rollout by starting with data collection before testing its autonomous systems. The goal is to eventually offer public robotaxi rides in the city.

Zoox is different from other companies because it’s building its own robotaxi from the ground up, with no steering wheel or pedals, rather than using regular cars. While this special vehicle is already being tested without a human driver in places like San Francisco, Foster City, and Las Vegas, most of Zoox’s testing still uses modified Toyota Highlanders with safety drivers. Nevertheless, the company plans to start giving public rides in its custom robotaxi in San Francisco and Las Vegas by the end of this year.

Interestingly, Atlanta was chosen because it’s a busy, fast-growing city with a strong ride-hailing market, tricky roads, heavy traffic, and frequent thunderstorms, which is perfect for testing how self-driving cars handle real-world challenges. Zoox says that it hopes to bring its robotaxi service to the city soon and offer people a comfortable and private way to ride. In the meantime, Zoox is still fine-tuning its technology and has issued software recalls earlier this year to fix problems in its test fleet.

Is Amazon Stock Expected to Rise?

Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 47 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $240.37 per share implies 17.8% upside potential.

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