Amazon’s Zoox Unleashes Steering-Wheel-Free Robotaxis in Las Vegas—Here’s Why It Matters

Las Vegas just became the testing ground for the future of urban mobility—and it's arriving without a steering wheel.

Amazon's autonomous vehicle subsidiary Zoox has deployed its first fleet of fully driverless robotaxis on public roads, marking a significant leap beyond current autonomous vehicle capabilities. These vehicles operate without traditional controls—no pedals, no steering wheel—just pure AI navigation through Sin City's infamous traffic.

The Strategic Play

While tech giants pour billions into autonomous driving, Zoox's wheel-free design represents a radical bet on full autonomy rather than incremental steps. The move positions Amazon to potentially dominate the robotaxi market before competitors even settle on steering wheel designs.

Market Implications

Autonomous vehicle stocks jumped on the news, though skeptics note that Vegas tourists—often distracted and unpredictable—might be the ultimate stress test for AI drivers. Meanwhile, Tesla's FSD suddenly looks like yesterday's technology.

The Bottom Line

Zoox's deployment isn't just about technology—it's about proving that full autonomy can work in complex urban environments. Success here could rewrite the entire transportation sector's valuation models. And if it fails? Well, there's always another billion in Amazon's couch cushions to try again.

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The electric robotaxi is unlike a traditional car. It has a boxy shape, can drive in both directions, and does not have a steering wheel or pedals. Also, the vehicle has two rows of seats facing each other, with floor-to-ceiling windows, making it easy to have a conversation and enjoy the view. It can carry up to four passengers at a time.

All rides are free during the initial launch phase. Passengers can book through a special app and get help from Zoox staff at pickup and drop-off spots.

The company plans to begin charging fares once it receives regulatory approval.

Zoox Needs to Catch Up

Zoox is the first U.S. robotaxi to offer rides in a vehicle designed without traditional driver controls. This was made possible by an exemption from federal vehicle safety standards granted by the National Highway Traffic Safety Administration (NHTSA) last month.

However, being a late entrant into the market, Zoox needs to play catch-up with its rivals. Alphabet’s (GOOGL) Waymo launched its first public service in Phoenix, Arizona, in 2020 and now conducts over 250,000 paid rides per week across five U.S. cities. Tesla (TSLA) also recently began a limited robotaxi service in Austin, Texas.

Scaling Up for the Future

Moving to expansion plans, the company plans to follow its Las Vegas debut with an early rider program in San Francisco by the end of the year. Further, Zoox is already testing in Los Angeles, Atlanta, and Seattle, and plans to expand to Austin and Miami next.

To support its growth, Zoox opened a new manufacturing facility in Hayward, California, aiming to produce up to 10,000 vehicles per year.

Is Amazon a Buy, Hold, or Sell?

Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $263.95, the average Amazon stock price target implies a 13.61% upside potential.