Waymo published a blog post today, giving a sneak peek of its brand-new sixth-generation robotaxi. This electric minivan is manufactured by the Chinese automaker Zeekr. In the post, Satish Jeyachandran, the Vice President of Engineering at Waymo, hails the new robotaxi as more advanced in technology compared to its predecessors. It also features fewer sensors, which is expected to cut costs for the Alphabet-owned company. Moreover, within its powerful computer lies all the knowledge and experience gained from the previous five generations of Waymo’s autonomous vehicles. This means it won’t need as much real-world testing as previous models before being made available to the public.

However, a potential challenge looms over Waymo’s claim that its new robotaxi will be cheaper to produce. There’s a possibility that it could be subject to costly new tariffs on Chinese-made electric vehicles. Earlier this year, the Biden administration announced that it would increase tariffs on EVs from China fourfold to 100 percent, up from the current 25 percent, citing the need to “protect American workers and American companies from China’s unfair trade practices.”

The tariffs aren’t mentioned in Jeyachandran’s update about the new robotaxis, nor is Zeekr identified as the vehicle’s manufacturer. (It’s important to note that Waymo isn’t hiding the vehicle’s origin; it was prominently featured in previous announcements about the new robotaxi.) The new levies are expected to come into effect later this year, and Waymo could apply for an exemption if it decides to. Last week, a spokesperson informed that the company is closely monitoring the tariffs situation but has no further comment at present.

To be sure, the cost savings discussed in Jeyachandran’s post are derived from the autonomy system and do not take into account any macroeconomic conditions. In this regard, there are several other new features in the new vehicle that deserve attention.

Waymo claims that the sixth-gen robotaxi will be equipped with a streamlined sensor suite consisting of “16 cameras, 5 lidar, 6 radar, and an array of external audio receivers (EARs).” These sensors will enable the vehicle to provide “overlapping fields of view, encompassing all directions around the vehicle, up to 500 meters away, both day and night, and in various weather conditions.” This is equivalent to over five football fields of visible range.

Waymo’s utilization of multiple sensors is crucial for redundancy. In case one sensor or camera fails, the others can ensure the vehicle continues to detect and respond to its surroundings. “Redundancies are indispensable in an autonomous driving system to provide safe backup functions for guaranteed reliability and to handle unexpected weather conditions,” Jeyachandran notes.

Meanwhile, other companies are attempting to reduce costs by either eliminating or downplaying certain sensors, especially lidar. Tesla is well-known for eliminating radar and ultrasonic sensors in favor of a camera-only system for its Full Self-Driving driver-assist system (which, it should be noted, is not a true self-driving system). Motional, which also aims to launch a robotaxi service, recently outlined its plans to give radar a more significant role due to the high cost of lidar sensors.

Lowering costs is becoming increasingly vital for robotaxi companies as they strive to scale up and expand into new markets. Alphabet doesn’t disclose Waymo’s costs in its earnings report. However, its “Other Bets” unit, which includes the robotaxi company, generated $365 million in revenue in the second quarter, an increase from $285 million a year ago. But the unit’s losses widened to $1.13 billion from $813 million during the same period last year. Alphabet recently stated that it would allocate an additional $5 billion to Waymo to assist in covering costs as it looks forward to the next stage of growth.

Jeyachandran doesn’t provide any specifics about where and when the new sixth-gen robotaxis will make their debut. Waymo is currently operational in Phoenix, San Francisco, and Los Angeles, with plans to launch a commercial service in Austin, Texas. The company has been conducting manual tests of the Zeekr-made minivans on public roads, with the aim of adding them to its commercial fleet shortly. Hopefully, the company can resolve the uncertainties regarding the vehicle’s import status before then.