Uber is sized up by analysts ahead of Tesla's robotaxi event
Uber Technologies (NYSE:UBER) is under analyst scrutiny ahead of Tesla's (TSLA) robotaxi event. Analysts are optimistic about Uber's role in the autonomous vehicle (AV) market, with Bank of America suggesting that increased competition will enhance Uber's network value. Recent partnerships with Waymo and Cruise bolster this view. However, some analysts express caution regarding the potential threat from Tesla's robotaxi platform, emphasizing the importance of execution in Uber's autonomous ride-hailing strategy. Despite concerns, Uber's shares rose 1.95% recently, reflecting investor confidence.
Uber Technologies (NYSE:UBER) is one of the stocks that will be closely watched after the Tesla (TSLA) robotaxi event. For the most part, analysts have been confident that Uber (UBER) will be a big part of the autonomous vehicle industry as it grows.
Bank of America thinks Uber's (UBER) network could benefit from more autonomous vehicle competition. Analyst Justin Post and his team think the highly competitive market for AVs will make Uber’s network more valuable as AV companies look to establish and improve their technology. Uber's (UBER) recent partnership announcements with Waymo, Cruise, and WeRide support the view of a competitive industry and Uber's (UBER) strong AV position.
The major point working in Uber's (UBER) was highlighted as being that AVs address a massive market opportunity, which should have multiple beneficiaries. Uber (UBER) is expected to have many partners that would be competitive with Tesla (TSLA) for costs and capabilities, and a hybrid-model is seen as likely to best address consumer needs for many years. The Tesla robotaxi event could also reveal that the Austin-based company's AV tech could still be years away from reaching Level 4 or 5 autonomy. A potential negative from the event were to be if a low-cost Cybercab from Tesla (TSLA) was perceived by investors as deflationary for mobility pricing in general.
On Seeking Alpha, analyst Dilantha De Silva is more cautious about Uber (UBER) and the threat from TSLA's robotaxi platform. "I believe Uber is doing the right thing by partnering with automakers and self-driving platforms to offer autonomous ride hailing globally. However, the success of these efforts will depend on the execution of these plans in the real world," he noted. He said that there is no reason for Uber (UBER) investors to panic, but thinks downplaying the threat posed by Tesla (TSLA) robotaxis could be a fatal mistake in the long run.
Shares of Uber (UBER) rose 1.95% in afternoon trading on Wednesday and are up more than 10% over the last six weeks.