From Nasdaq: 2024-05-09 06:30:00

Tesla (NASDAQ: TSLA) plans to introduce autonomous robotaxis, potentially competing with Uber (NYSE: UBER) in the future. CEO Elon Musk aims to launch a more advanced model without a steering wheel for consumer use, allowing customers to rent out their Teslas as self-driving taxis. This move may disrupt existing ride-sharing networks.

During Tesla’s Q1 2024 earnings call, Musk announced plans to unveil a purpose-built self-driving taxi vehicle in August. This could threaten Uber’s business model, as self-driving technology could significantly reduce operating costs. While Uber has partnerships with companies like Waymo, Tesla’s robotaxis pose a potential challenge to its conventional ride-sharing services.

Investors concerned about Tesla’s robotaxis disrupting Uber may be overreacting. Musk’s promises of self-driving technology have yet to materialize, with Tesla failing to deliver on previous claims. Uber faces competition from Waymo, which is operational in four cities and poses a more immediate threat to Uber’s market share and valuation. Tesla’s impact on Uber stock may be less significant.

For investors considering Uber Technologies, the Motley Fool Stock Advisor team did not include Uber in their list of top stocks. Stock Advisor has a track record of successful stock picks and offers guidance on building a profitable investment portfolio. While Uber faces competition and potential valuation challenges, Tesla’s robotaxis may not be the biggest concern for Uber investors.

Suzanne Frey, an executive at Alphabet, sits on The Motley Fool’s board of directors. Author Brett Schafer holds positions in Alphabet, and The Motley Fool has investments in companies such as Airbnb, Alphabet, Tesla, and Uber Technologies. Investors should consider potential market disruptions and do thorough research before making investment decisions.



Read more at Nasdaq: Will Tesla Disrupt The Ride Sharing Market?