Waymo to Open Major Arizona Facility to Expand Robotaxi Fleet

Mesa, Arizona — Waymo, the self-driving technology company owned by Alphabet Inc., has announced plans to significantly expand its robotaxi operations with the construction of a new 239,000-square-foot manufacturing facility in Mesa, Arizona. The move is aimed at boosting production of its autonomous fleet, with the goal of adding over 2,000 new robotaxis.

Partnering with Canadian auto supplier Magna International, Waymo will retrofit Jaguar I-Pace electric SUVs with its proprietary sixth-generation autonomous driving system. These vehicles will support the company’s upcoming service launches in three new metro areas—Atlanta, Miami, and Washington, D.C.—set for 2026. Currently, Waymo operates its ride-hailing service, Waymo One, in Phoenix, San Francisco, Los Angeles, and Austin.

Waymo says the new facility will incorporate an automated assembly line and be designed for high-volume output. Once operating at full capacity, it is expected to produce tens of thousands of autonomous vehicles annually. The Mesa plant will also support integration of Waymo’s technology on upcoming vehicle platforms, starting with the Zeekr RT model later this year.

“We have made great strides in steadily expanding Waymo One ride-hailing service to multiple commercial markets, and now is the time to scale our technology further,” said Chris Bonelli, Waymo’s Product Communications Manager.

A Major Milestone for Autonomous Tech

Industry experts view the announcement as a key development in the autonomous vehicle (AV) sector. Kathleen Rizk, Senior Director at J.D. Power, called it a “significant milestone,” highlighting Waymo’s continued investment in AV technology at a time when many companies are pulling back due to cost and regulatory challenges.

“Waymo’s confidence in scaling its fleet reflects both the maturity of its technology and increasing consumer trust,” Rizk added.

Edward Sanchez, Senior Analyst at TechInsights, noted the strategic importance of the move. “This announcement solidifies Waymo’s position as the leading autonomous ride-hailing provider in the U.S.,” he said.

Seth Goldstein of Morningstar agreed, emphasizing the broader implications. “Building a dedicated robotaxi manufacturing facility is a positive signal for the entire industry and will help accelerate AV adoption.”

Still Early Days for the Industry

Despite Waymo’s growth, analysts caution that the broader market for autonomous vehicles remains in its infancy. Sam Abuelsamid, VP at Telemetry, pointed out that while Waymo’s expansion signals confidence in its product, the path to profitability remains elusive.

“Operational costs remain high, and demand for robotaxis is inconsistent throughout the day,” Abuelsamid said. “Utilizing vehicles for other tasks, such as package delivery, during off-peak times will be key to economic sustainability.”

Rizk noted that consumer concerns—especially around safety and data privacy—remain significant hurdles. J.D. Power’s 2024 Robotaxi Experience Study revealed that 83% of consumers want access to safety statistics before riding in an AV, and over 80% worry about the technology being hacked.

AVs Still a Decade Away from Mainstream

While Waymo appears to be leading the AV race in North America, experts expect widespread adoption will be gradual and uneven. Regulatory approvals vary by state in the U.S., unlike in more centralized jurisdictions such as China.

Morningstar predicts autonomous vehicles will comprise half of all ride-hailing rides by 2035, driven by lower operational costs and growing consumer acceptance. However, experts agree that mainstream use is unlikely before the end of the decade.

Waymo, with the backing of Alphabet and a growing presence in U.S. cities, continues to stand out. According to analyst Malik Ahmed Khan, it is the only AV service currently delivering more than 250,000 rides per week.

“Waymo’s scale, brand recognition, and access to capital put it in a strong position to lead the AV market as it matures,” Khan said.

As Waymo prepares to bring its robotaxi service to more cities, its Arizona expansion marks a critical step forward in making autonomous transportation a reality for more Americans.