The once far-flung concept of autonomous transportation is an increasing reality as robotaxis are taking hold in more cities. Predictably, there are investment implications.
For example, Tesla’s (NASDAQ: TSLA) ability to bring self-driving technology to life while manufacturing the fleets needed to drive down ride-hailing costs could be a significant long-term driver for that stock, potentially adding trillions in market capitalization.
“Today, Uber accounts for less than 1% of US urban mileage. Operating at high utilization rates, ~140,000 robotaxis could accommodate the current ride-hail volume,” according to Ark Investment Management. “Provocatively, ~24 million robotaxis—less than 10% of today’s registered US vehicle fleet—would be necessary to accommodate the majority of all US urban miles traveled. Today, Tesla has the production capacity to build fleets and accommodate all urban vehicle miles in top ride-hail cities. ”
Alphabet’s (NASDAQ: GOOGL) Waymo – Tesla’s primary US-based robotaxi rival – is making waves its own. Not only is Waymo expanding in select metropolitan areas, but it’s also rumored to be close to raising $16 billion, which value it at $110 billion.
Point is the robotaxi revolution is just getting started and, not, surprisingly, some thematic ETFs stand ready to answer that call. Let’s explore a new one below.
Making the CABZ Call
The Roundhill Robotaxi, Autonomous Vehicles & Technology ETF (CABZ) debuted last month and it could be an ideal consideration for investors seeking exposure to autonomous transportation while also removing the stock-picking burden. As for the validity of this theme, it’s there and potentially enhances the allure of CABZ.
“Goldman Sachs research suggests that by 2030, the total addressable market (TAM) for North America and China could grow to $7. 3 billion and $11. 7 billion dollars, respectively, with even more room to grow as the industry matures and commercialization materializes,” notes Thomas DiFazio of Roundhill. “For North America alone, this would imply a 90% annual growth rate. ”
China’s prominence in the global robotaxi market can’t be ignored as it will be the largest or second-largest such behind only the U. S. The actively managed CABZ reflects that importance as the rookie ETF allocates more than 31% of its weight to Chinese stocks, including Baidu (BIDU), once hailed as “the Google of China. ”
“Apollo Go is Baidu’s autonomous ride-hailing service active in 22 cities globally, racking up 240 million autonomous kilometers (149 million miles), including 140 million fully driverless autonomous kilometers (87 million miles),” adds DiFazio. “The company has plans to expand into Europe, specifically through strategic partnerships with PostBus, the leading public transport operator in Switzerland. Baidu also has partnerships with Lyft and Uber to implement rollouts in specific markets in Germany, the U. K. , Asia and the Middle East. ”
CABZ: A Practical Approach
While autonomous transportation of humans is still in its infancy and likely several years away from widespread acceptance in densely populated areas of the U. S. , this isn’t the riskiest theme investors can consider. Add to that, the new Roundill ETF employs a practical approach that can potentially defray some of the bumps associated with emerging growth segments.
For example, the new ETF allocates approximately 22% of its portfolio to Alphabet, Tesla and Nvidia (NASDAQ: NVDA) and while those aren’t risk-free names – no stock is – they are established mega-cap companies with diverse business models that are not dependent on robotaxi. Rather, autonomous transportation is more of an additive concept that could be a fresh contributor to these companies’ longer-ranging growth stories. Alphabet proves as much.
“Owned by Alphabet, Waymo is considered one of the leaders for self-driving cars and robotaxi services on the West Coast in the U. S. ,” concludes DiFazio. “In 2025, Waymo completed more than 14 million trips (more than tripling public rides from last year) and appeared on pace to surpass 20 million lifetime trips by year-end. Waymo’s active fleet is made up of 2,500 fully driverless vehicles, operating commercially in San Francisco, Phoenix, Los Angeles, Austin, and Atlanta both via its own app and its partnership with Uber. ”