Key insights
- Waymo, Alphabet's self-driving unit, is recalling nearly 3,900 robotaxis in the US due to a software issue that caused vehicles to enter construction zones on freeways. This follows a similar recall last month for driving through flooded roads. While a significant operational issue for Waymo, the direct impact on Alphabet's (GOOGL) stock price or the broader US equity market is likely minimal, hence a neutral influence score.
Investing.com -- Waymo, the self-driving unit of Alphabet Inc (NASDAQ:GOOGL), is recalling nearly 3,900 robotaxis in the United States due to a software problem that could cause the vehicles to enter closed freeway construction zones and continue driving.
This marks the second recall by Waymo in slightly over a month.
The recall, filed with the National Highway Traffic Safety Administration, follows more than a dozen incidents since early April in California and Arizona. In these cases, Waymo autonomous vehicles failed to recognize ramp closure signs and drove past them into pre-planned freeway construction zones and freeway lanes with active construction work.
The company temporarily restricted freeway driving until it developed improved awareness and response systems for freeway closures. Waymo has updated the vehicle software to prevent the autonomous vehicles from entering construction zones.
Last month, Waymo recalled approximately 3,800 robotaxis after the vehicles were found to enter flooded roads with higher speed limits.
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