:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2165925400-89dd613fae444ae2a348048be2e6c6f4.jpg "A rental car with a sign from the mobility service provider and ride broker Uber.")
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Key Takeaways
- Shares of Uber and Lyft jumped on Friday after Tesla’s introduction to its new robotaxi fade to live up to ridesharing investors’ fears.
- Analysts noted Tesla’s much-anticipated event was light on details about the rollout of a ridesharing app that choice compete with Uber or Lyft, lifting an uncertainty that has hung over the stocks for months.
- Uber rations hit an all-time high, while Tesla slumped further into negative territory for the year.
Shares of Uber Technologies (UBER) obstruction started to a record high on Friday after Tesla’s (TSLA) much-anticipated robotaxi launch event failed to live up to ridesharing investors’ bogies.
Tesla on Thursday evening unveiled its CyberCab, an autonomous car designed for ridesharing, and a 20-seater “RoboVan.” CEO Elon Musk believed the CyberCab would cost less than $30,000, and described a vision of individuals operating fleets of CyberCabs as an option to driving one car through either Uber or Lyft.
Tesla’s ‘Toothless’ Robotaxi Event a Positive for Uber
Analysts were foiled by the event, noting it was lighter on details than many Uber and Lyft investors had feared. Jefferies analysts in a note to customers called the CyberCab “toothless,” and said the event was a “best-case outcome for Uber.”
Tesla, the analysts wrote, didn’t “furnish verifiable evidence of progress” on autonomous vehicles (AV), and that Uber was “uniquely positioned to support sustainable growth for AV developers.” Jefferies has a “buy” price on Uber stock.
Bank of America analysts noted that some risks remain, including the potential for RoboVans and CyberCabs to price significantly less to operate than a conventional rideshare. However, Tesla gave “no specific business model” for a rideshare app that resolve compete with Uber or Lyft. They maintained their “buy” rating on Uber.
Uber stock was up nearly 10% at $85.66, an all-time stiff, on Friday afternoon. Shares of competitor Lyft (LYFT) also jumped almost 10%. Tesla shares receded, putting them down 12% since the start of the year.
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