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Waymo pauses robotaxi service in San Francisco after blackout chaos — Musk says Tesla car service unaffected

By Mark GrundellCNBCDecember 21, 2025 at 6:49 PMBearish1 min read

Alphabet's self-driving unit faces infrastructure challenges amid widespread power outages

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Waymo's temporary service halt in San Francisco underscores the vulnerability of advanced autonomous systems to external infrastructure failures. This incident provides a real-world test of resilience for self-driving technology during widespread civic disruption.

What to watch next

Investors should monitor Waymo's service resumption and any subsequent commentary on system performance under adverse conditions.

Waymo, Alphabet's self-driving unit, temporarily halted its robotaxi operations in San Francisco due to widespread power outages caused by severe storms. This pause on Waymo's service, which operates without safety drivers in autonomous mode, highlights the challenges self-driving technology faces during extreme infrastructure disruptions. Meanwhile, Elon Musk stated that Tesla's self-driving car service, which is still in beta and requires human oversight, remained unaffected by the blackouts.

Waymo, a division of Alphabet (GOOGL), temporarily suspended its fully autonomous robotaxi service in San Francisco following significant power outages caused by severe storms. This pause emphasizes the operational complexities and external dependencies faced by self-driving technology, particularly when critical infrastructure, like power grids, is compromised. The incident prompts questions about the robustness of autonomous systems to large-scale disruptions, even as the technology continues to advance. For investors, the event highlights potential business continuity risks for companies heavily invested in autonomous vehicle deployment. While Waymo operates without safety drivers, a key differentiator, this also means a higher reliance on flawless environmental conditions and operational systems. The market reaction to Waymo's situation could influence broader investor sentiment towards the capital-intensive and nascent autonomous driving sector, which requires substantial investment without immediate widespread profitability. In contrast, Elon Musk noted that Tesla's Full Self-Driving (FSD) beta, which still requires active human supervision, was not similarly impacted during the blackouts. This distinction suggests different resilience profiles depending on the level of autonomy and human oversight. Industry observers will now closely watch Waymo's restart protocols and any lessons learned from this incident to better understand the true commercial viability and scalability of fully driverless services in diverse and unpredictable urban environments.

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