Tesla's Robotaxi Launch Sparks Concerns for Uber's Future
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What's Going On With Uber Stock Today? - Uber Technologies (NYSE:UBER)
Uber Technologies Inc. UBER shares are dropping Thursday after Tesla CEO Elon Musk confirmed that fully self-driving Model Y vehicles have been testing on public roads in Austin, Texas, this time without anyone in the driver's seat. What To Know: The sell-off in Uber stock appears to reflect market concern that Tesla's progress in autonomous ride-hailing may threaten Uber's long-term competitiveness, especially since Tesla's robotaxi model would eliminate the need for human drivers entirely. While Uber remains positioned as a low-cost provider using other automaker AV platforms, Tesla's vertical integration and aggressive push toward autonomy signal growing pressure on the ride-hailing sector. Tesla's robotaxi program is scheduled to launch officially on June 12, with the first phase expected to involve 10 to 20 Model Y vehicles running the latest version of Tesla's Full Self-Driving (FSD) software. According to industry analyst Gary Black, these vehicles will be remotely supervised by trained teleoperators, indicating a step toward unsupervised autonomy. A recent Tesla job posting also confirms the company is hiring engineers to build remote teleoperation tools for its robotaxis and Optimus robots. Although Tesla's FSD has not yet received regulatory approval for unsupervised operation, its early deployment of remotely monitored autonomous vehicles highlights a potential shift in the competitive landscape. Uber's decline comes amid investor reaction to the accelerating timeline of Tesla's autonomous ambitions. UBER Price Action: Uber shares were down 4.65% at $84.14 at the time of publication on Thursday, according to Benzinga Pro. Read Next: Stocks Edge Higher After Court Stifles Trump Tariffs, Nvidia Rallies To 3-Month Highs, Bitcoin Dips Below $107K: What's Driving Markets Thursday? Image Via Shutterstock. UBERUber Technologies Inc$84.28-4.51%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum89.10Growth97.55QualityNot AvailableValue41.32Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs
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Why Shares of Uber Are Sinking Today (Hint: It Has to do With Tesla) | The Motley Fool
Shares of the ride-hailing giant Uber (UBER -4.46%) traded roughly 4.5% lower in the final half-hour of trading today after a Wall Street analyst cited a potential threat to Uber's business model and long-term strategy. In a research note, Wedbush analyst Scott Devitt maintained a "neutral" rating on Uber and an $85 price target but noted that Tesla's soon-to-launch robotaxis present a threat to the company's long-term vision. The news comes after Bloomberg reported that Tesla plans to launch robotaxis in Austin on June 12. In the note, Devitt said that a fully autonomous ride-hailing fleet could significantly disrupt Uber's human-powered fleet. Tesla's CEO Elon Musk has also indicated that Tesla may try and set up its own ride-hailing network rather than partnering with an existing player. Meanwhile, Uber has positioned itself as the strategic partner for autonomous vehicle companies, having already formed partnerships with Waymo and Pony AI, among others. Uber believes that its massive fleet, operational platform, and regulatory expertise make it an ideal partner for self-driving companies looking to scale. While the market seems to be taking Wedbush's concerns seriously, I think it's still too early to say that Uber is in trouble. It will take Tesla time to scale, and it could still take awhile for autonomous ride-sharing to gain widespread traction. Plus, Musk and Tesla have never run a ride-hailing fleet before. They may still end up partnering with Uber. Uber has transformed itself financially, becoming profitable and generating significant free cash flow. I also think there will likely be more than one winner in the autonomous space. Interested investors can buy the dip here.
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Uber's stock drops as Tesla announces the imminent launch of its autonomous robotaxi service, potentially disrupting the ride-hailing industry.
Tesla's Robotaxi Announcement Shakes Uber's Stock
Uber Technologies Inc. (NYSE:UBER) experienced a significant stock price drop of approximately 4.5% on Thursday, following Tesla's confirmation of its imminent robotaxi launch. The market reaction highlights growing concerns about the potential disruption of the ride-hailing industry by autonomous vehicles 1.
Source: The Motley Fool
Tesla's Autonomous Ambitions
Elon Musk, CEO of Tesla, announced that fully self-driving Model Y vehicles have been testing on public roads in Austin, Texas, without human drivers. This development marks a significant step towards Tesla's goal of launching a robotaxi service. The official launch is scheduled for June 12, with an initial fleet of 10 to 20 Model Y vehicles equipped with the latest Full Self-Driving (FSD) software 1.
Potential Threat to Uber's Business Model
Wall Street analysts, including Wedbush's Scott Devitt, have expressed concerns about the long-term implications for Uber. A fully autonomous ride-hailing fleet could potentially disrupt Uber's human-powered model. Elon Musk has also hinted at the possibility of Tesla establishing its own ride-hailing network, rather than partnering with existing players like Uber 2.
Uber's Strategic Positioning
Source: Benzinga
Despite the market's reaction, Uber has positioned itself as a strategic partner for autonomous vehicle companies. The ride-hailing giant has already formed partnerships with companies like Waymo and Pony AI. Uber argues that its extensive fleet, operational platform, and regulatory expertise make it an ideal collaborator for self-driving companies looking to scale their operations 2.
Industry Impact and Future Outlook
The introduction of Tesla's robotaxis signals an accelerating timeline for autonomous ride-hailing services. While Tesla's initial deployment involves remotely monitored vehicles, it represents a significant step towards unsupervised autonomy. This development has sparked investor concerns about the changing competitive landscape in the transportation sector 1.
Uber's Financial Position
Despite the challenges posed by emerging autonomous technologies, Uber has made significant strides in improving its financial performance. The company has achieved profitability and generates substantial free cash flow, which may provide some resilience in the face of industry disruption 2.
Market Reaction and Analyst Perspectives
While some analysts maintain a cautious outlook on Uber, others believe it's premature to conclude that the company is in trouble. The widespread adoption of autonomous ride-sharing may take time, and Tesla's lack of experience in managing a ride-hailing fleet could present challenges. Some industry observers suggest that there may be room for multiple players in the autonomous transportation space 2.
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