$Tesla Motors(TSLA)$ is set to launch its new Robotaxi, called “Cybercab.” Many analysts believe that with the evolution of the autonomous vehicle industry, $Uber(UBER)$ will play a crucial role in this market.
Bank of America suggests that Uber’s network could benefit from the competition brought by autonomous vehicles. Analyst Justin Post and his team argue that as self-driving companies work to develop and refine their technologies, the competitive landscape will enhance the value of Uber’s network.
Recently, Uber announced partnerships with $Alphabet(GOOG)$ $Alphabet(GOOGL)$ Waymo, $General Motors(GM)$ Cruise, and $WeRide Inc.(WRD)$ , underscoring both the fierce competition in the industry and Uber's strong standing in the autonomous vehicle space.
Post emphasizes that Uber sees significant market opportunities arising from autonomous vehicles, which should benefit multiple stakeholders. Uber anticipates that numerous partners will compete with Tesla on cost and capabilities, with a hybrid model viewed as the most likely to meet consumer demand for many years to come.
However, Tesla's Robotaxi initiative may indicate that the company still has several years to go before reaching Level 4 or 5 autonomy in its technology. A potential downside is that investors might perceive Tesla's low-cost Cybercabs as introducing deflationary pressure on overall ride-hailing fares.
Other analysts take a more cautious stance regarding the threat posed by Uber and Tesla’s Robotaxi platform. One noted:
“I believe Uber’s strategy of partnering with automakers and autonomous platforms to offer self-driving ride-hailing services globally is the right approach. However, the success of these efforts will depend on their execution in the real world.”
That analyst pointed out that Uber investors should remain calm, but downplaying the long-term threats from Tesla’s Robotaxis could be a serious miscalculation.
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