Uber's stock jumped 10% after Tesla's Cybercab unveiling, signaling relief from potential disruption

From Nasdaq: 2024-10-14 09:00:00

Tesla debuted its robotaxi, the Cybercab, at a Warner Bros. soundstage in Burbank, California. The fully autonomous vehicle will cost less than $30,000 and is expected to go into production by 2026. Analysts had mixed reactions, causing Tesla stock to drop 8% in premarket trading. Uber and Lyft shares soared in response.

Uber’s stock jumped 10% after Tesla’s Cybercab unveiling, signaling relief from potential disruption. Uber is exploring AV partnerships with companies like Waymo and GM’s Cruise. Waymo has deployed AVs in several cities, while GM’s Cruise is operating in Phoenix. Tesla’s FSD technology is already impacting Uber drivers.

While the Cybercab event may have delayed a showdown, AV progress continues. Tesla’s autonomous vehicles will be individually owned and rentable, potentially disrupting Uber’s current model. The move towards AVs poses a long-term threat to Uber. Investors should consider the evolving landscape carefully.

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Read more at Nasdaq: Was Uber Really the Winner From Tesla’s Robotaxi Event?