Rivian CEO Says Autonomy Could Drive ‘Huge Changes’ in Market Share as Tesla FSD Rival Emerges

Tesla launched its Cybercab, a fully automated taxi without steering wheels or brake pedals, in Austin, Texas. U.S. regulators opened a safety probe, causing Tesla's stock to drop 5%. The investigation focuses on Tesla's self-certification process and the safety of its camera-only navigation system. Other companies, like Amazon's Zoox, are also developing driverless taxis.

Tesla plans to launch its Cybercab in Dallas in November 2026, with Nevada approving up to 5,000 robotaxis in Las Vegas. The company aims for a $0.30 per mile operating cost, with bullish investors expecting significant profits at scale. Tesla's Austin fleet grew to over 300 vehicles in two months, and the company targets 1 million robotaxis by 2027. However, actual costs and fleet size remain uncertain.

Tesla plans to expand its Cybercab service to Dallas in November and has been approved to operate 5,000 autonomous vehicles in Las Vegas. The company aims to reduce operating costs to $0.30 per mile, with potential annual revenue of $20,000 per vehicle at $0.40 per mile. Tesla's long-term goal includes 1 million robotaxis, which could generate $20 billion in annual gross fares, with $5 billion in annual contribution before taxes.

SpaceX (SPCX) shares fell 6.37% on Oct. 30 to $134.72, despite Binance co-founder Changpeng Zhao's support. Zhao clarified his earlier remarks, stating he holds SpaceX shares long-term. The company's revenue reached $14.6 billion in Q3 2026, up 161% YoY. Elon Musk has hinted at a potential merger with Tesla, with Barclays suggesting a deal structure. Analysts' price targets range from $118 to $800.

Analysts made notable calls this week. D.A. Davidson upgraded Broadcom (AVGO) to Buy with a $400 price target, citing AI-related growth prospects. William Blair downgraded Moderna (MRNA) to Market Perform due to valuation concerns. Argus downgraded Abbott (ABT) to Hold after its reduced growth outlook. Jefferies upgraded Rivian (RIVN) to Buy, citing progress in margins and execution. GF Securities raised AMD's (AMD) price target to $720, expecting strong data center growth.

Rivian's Q3 2026 results showed revenue of $2.16B, beating expectations, with the R2 crossover driving growth. The company remains unprofitable but expects positive gross margin for the R2 by year-end. Rivian's partnership with Volkswagen, including software and AI, remains crucial. The company aims to launch point-to-point autonomous driving features later this year.