Uber Accelerates EV Adoption as Tesla's Robotaxi Day Looms

Uber Vs. Tesla? Maybe Not -- Analysts Say Autonomous Vehicles 'Will Be Market Expanding' - Uber Technologies (NYSE:UBER)

While Robotaxi Day could be transformational for Tesla, the event could also have a positive or negative impact on Uber. A Tesla Inc. TSLA Robotaxi Day event could significantly impact Uber Technologies UBER stock price and future valuation. Analysts outline both the bullish and bearish scenarios, explaining how Tesla's event could benefit Uber's long-term growth and boost the valuation of the autonomous vehicle sector. The Uber Analysts: Bank of America analysts Justin Post and Michael McGovern reiterate a Buy rating with an $88 price target on Uber ahead of Tesla's Robotaxi Day. The Uber Bull Case: The analysts see Tesla's Robotaxi Day increasing the value of Uber's network, which could provide a short-term boost and be a long-term concern for competition. "We think AVs will be market expanding, and a highly competitive market for AVs will make Uber's network more valuable as AV companies look to establish and improve their technology," the analysts said. The analysts cite the state of California having 32 companies with permits related to autonomous vehicles. "We think Uber's recent partnership announcement with Waymo, Cruise, and WeRide support our view on a competitive industry and Uber's AV position." Uber's stock price reaction to Tesla's Robotaxi Day could depend on Tesla's perceived moat for technology, its timeline, and the potential for a partnership between the two companies. "AVs are poised to be a large market, with 3 trillion miles driven in the US, and autonomous driving could materially expand the market as AVs will eliminate many existing market limitations." The analysts added that Uber could have a market revenue opportunity of $480 billion. "This huge revenue opportunity, which we think can create trillions of market value, is spurring significant investment in AV technology by some of the largest companies in the world." The analysts name Alphabet Inc GOOGGOOGL, Amazon.com Inc AMZN and General Motors Company GM as key investors in the autonomous vehicle sector. Uber's valuation could increase with competition from Tesla and others, the analysts added. Read Also: Tesla Robotaxi Day Preview: Move Over Autonomous Vehicles, Analyst Says This 'Positive Catalyst' Could Be More Important The Uber Bear Case: While analysts maintain a Buy rating on Uber, they acknowledge potential concerns from investors who believe that Tesla's Robotaxi Day and similar events could present a bearish case for the stock. According to the analysts, points from bears include Tesla's potential pole position in autonomous vehicles, its large existing base of FSD-capable cars, a low-cost CyberCab, and its technology and AI capabilities. "Underlying Tesla's infrastructure are the millions of cars in its network collecting real-world driving data," the analysts said. The analysts said other automotive companies could be years behind in infrastructure, data, and vehicle launches. Tesla could also undercut ride pricing from Uber and other companies, the analysts added. While there were rumors of Tesla partnering with Uber or working with a company founder, Tesla CEO Elon Musk has shut down the reports. The analysts said there are no indications that the companies will work together. "AI could accelerate Tesla's FSD capabilities & rollout." Robotaxi Day Anticipation Builds: Thursday's Robotaxi Day is set to be a big moment for Tesla and Musk, Wedbush analyst Daniel Ives said. The analyst, who has an Outperform rating and $300 price target, said the event could prove that Tesla is the "most undervalued AI name" and could show off "game-changing" technology. "We believe Robotaxi Day will be a seminal and historical day for Musk and Tesla and marks a new chapter of growth around autonomous, FSD, and AI future at Tesla," Ives said. Ives expects to hear "many updates" from Tesla at the event, including the timeline of robotaxis rolling out. "We also expect some key updates around the company's projections on Cybercab scaling, overall cost per mile, a Tesla ride-share app, and a Generation 1 demo on premises of the breakthrough technology designed to revolutionize urban transportation." Ives said AI and FSD could represent a $1 trillion value for Tesla in the coming years. "Tomorrow it's time for Musk to have a watershed unveiling event to kick this AI era off at Tesla." UBER, TSLA Price Action: Uber stock was up 2.2% to $77.87 on Wednesday, versus a 52-week trading range of $40.09 to $82.14. It is up 33.0% year-to-date in 2024. Tesla stock was down 1.41% to $241.05 on Wednesday, compared to its 52-week trading range of $138.80 to $271.00. It is down 1.8% year-to-date in 2024. Read Next: How Many EVs Has Tesla Delivered, Produced Each Quarter? A Look At The Results Since 2019 Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Uber Announces Measures To Ramp Up Electrification Of Its Fleet Ahead Of Tesla's Robotaxi Unveil - Uber Technologies (NYSE:UBER)

Uber Technologies UBER is working towards its goal of transforming into a zero-emission platform with measures including the introduction of an AI assistant on the driver app to help with EV-related queries, company CEO Dara Khosrowshahi said on Tuesday. What Happened: Uber committed to transforming into a zero-emission platform by 2040 four years ago. On Tuesday, Khosrowshahi said in a blog that the company invested heavily to increase the number of electric vehicles in its fleet to over 182,000 units. "It's important progress, but we know it's not enough. In order to help repair our planet, both the public and private sectors need to act with more urgency. And while we know the future is electric, getting there requires new ideas and constant innovation," the CEO said. The CEO also announced the rollout of new features and updates to ramp up the electrification of its fleet including kicking off a series of premium EV pop-ups so riders can try previous EVs such as the Lotus Eletre in London and Rivian R1 in LA, Miami, and Dallas. The CEO also announced an AI assistant in the driver app powered by OpenAI's GPT-4o to help resolve drivers' queries on EVs. Why It Matters: Uber's push towards electrification comes ahead of EV giant Tesla Inc. TSLA unveiling its dedicated robotaxi product on Oct. 10. Musk has previously said that the company's robotaxi fleet will operate as a mix of Uber and Airbnb. While a certain portion of the fleet will be owned by Tesla, individual Tesla customers can also add or subtract their vehicles to the robotaxi fleet at will for additional income. As for riders, they can summon a car using the Tesla App, Musk said. However, not a lot of people are convinced about the functionality of this model, including the Uber CEO who flagged concerns including whether a car owner is going to want their car to be ridden in by a complete stranger. He also flagged other concerns including trouble in meeting demand as individual drivers might want their vehicles at the same hour as when demand peaks. Check out more of Benzinga's Future Of Mobility coverage by following this link. Read More: GM Rolls Out More Affordable Silverado EV Trim To Compete With Ford F-150 Lightning, Tesla Cybertruck Photo courtesy: Wikimedia Market News and Data brought to you by Benzinga APIs