Tesla (TSLA) has had a rough start to the year, to say the least.
Case in point: Its Q2 deliveries tanked 13.5% year-over-year to just 384,122 units, while revenues fell double digits and operating income declined over 40%.
That gut-punch of a quarter is how far the EV giant has slipped from its breakneck expansion phase, even as its CEO, Elon Musk, doubled down on autonomous driving as the future.
That said, the mid-year Robotaxi event stole headlines, with Tesla finally showing its vision of a driverless fleet. The reviews were mixed, but the service is up and running, and Tesla’s full self-driving (FSD) was on full display as the crown jewel of Musk’s strategy.
However, with the momentum lagging and regulators circling, a surprising competitor has entered the conversation, with tech, scale, and credibility that threatens Tesla’s grip on the robotaxi narrative.
Image source: Joseph/The Washington Post via Getty Images
Qualcomm takes aim at Tesla’s FSD, with robotaxi ambitions
Chip giant Qualcomm (QCOM) just took aim at Tesla’s FSD territory with a monumental new move.
At the IAA Mobility event, the company showed off Snapdragon Ride Pilot, co-developed with BMW, which makes its debut in the new iX3.
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The system’s cutting-edge, to say the least, bringing hands-free, eyes-on autonomy up to 85 mph. Additionally, the technology efficiently handles lane changes, parking, and even some urban scenarios.
It’s already been validated in over 60 countries, with plans to surpass 100 by 2026, and crucially, it’s open to other automakers, not just BMW.
Though that isn’t robotaxi-ready Level 4 yet, Qualcomm is still packaging robust L2+ autonomy at a global scale. That gives carmakers a novel plug-and-play alternative to Tesla’s tightly integrated FSD.
How does Qualcomm Snapdragon Ride Pilot challenge Tesla’s autonomy lead?
- Multi-OEM adoption: Unlike Tesla’s closed ecosystem, Qualcomm’s Ride Pilot can potentially spread across multiple brands, which takes away from FSD’s uniqueness.
- Premium validation: BMW’s Neue Klasse launch gives the technology the instant credibility that rivals will most certainly take into account.
- Regulatory scale: It’s validated in over 60 countries compared with Tesla’s patchwork rollouts, positioning Qualcomm on a compliance-friendly path.
- AI learning flywheel: Ride Pilot makes use of generative AI to improve over time, laying the foundation for eventual robotaxi applications.
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Tesla FSD now: where it stands and what’s next
Tesla’s FSD technology remains classified at SAE Level 2, which essentially means that a driver needs to stay alert and in control at all times.
Despite the branding, it’s still far from Level 3 or higher, and regulators globally, including in China, treat FSD as advanced driver assist.
In contrast, Waymo has deployed Level 4 robotaxis that have already clocked 100 million driverless miles in six months, while expanding into new cities. On the flip side, analysts expect Tesla’s Robotaxi rollout later in the decade, with heavy regulatory and technical hurdles.
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Tesla’s near-term vision remains ambitious, though, covering 50% of the U.S. population with its Robotaxi service. However, current operations are limited to small, permit-restricted pilots.
Levels of self-driving autonomy (quick guide):
- Level 0: There’s no automation involved, and the human driver basically does all the tasks.
- Level 1: The system can either handle steering or acceleration/deceleration, but only in a limited way.
- Level 2: Steering and acceleration/deceleration are supported, but a human is always in control.
- Level 3: System is able to drive under defined conditions without supervision.
- Level 4: Fully autonomous in specific zones such as robotaxis from Waymo One.
- Level 5: Full autonomy everywhere, under all conditions (still in theory).
If Tesla can effectively monetize its colossal fleet via FSD subscriptions, the upside is massive.
Still, there have been multiple Major FSD-related incidents so far:
- Dec. 2023: Tesla updated its software after the NHTSA recall of 2 million U.S. vehicles.
- April 2024: NHTSA reviewed whether the recall fix reduced Autopilot’s issues.
- Oct. 2024: NHTSA probes crashes linked to FSD, with at least two deaths.
- June 2025: NHTSA reviewed Tesla robotaxi plans, including monitoring and supervision.
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