Tesla’s robotaxi event failed to impress investors while Uber’s stock gained on the news.
Tesla’s (NASDAQ: TSLA) highly anticipated robotaxi event, held on October 10, 2024, failed to meet investor expectations, while Uber (NYSE: UBER) and Waymo’s expanded partnership, announced a month earlier, has shown promise in the autonomous ride-hailing market.
These developments have had notable impacts on both companies’ stock performances. At the time of writing, Tesla had dropped by over 6% in premarket trading, and Uber had gained almost 5%.
Tesla’s Robotaxi Event Falls Short
Tesla CEO Elon Musk unveiled the company’s “Cybercab” robotaxi at a star-studded event titled “We, Robot” at Warner Bros studio near Los Angeles.
The event, which was months in the making and watched by approximately 4 million viewers on Musk’s X social media platform, showcased a futuristic vehicle with gull-wing doors and no steering wheel or pedals. Musk announced that production would begin in 2026 with a price tag under $30,000 and an projected operating cost of 20 cents per mile.
Despite the grand reveal, analysts and investors were left wanting more. Equity trader Dennis Dick expressed disappointment, stating, “I think the market wanted more definitive timelines.”
Jessica Caldwell of Edmunds praised Musk’s vision but noted that many questions remain about practical implementation. Critics pointed to the lack of concrete details on Tesla’s transformation from an automaker to an autonomous driving and AI titan, as well as the absence of information on a previously promised ride-hailing app and a lower-priced mass-market vehicle.
Uber and Waymo Forge Ahead
In contrast to Tesla’s event, Uber Technologies, Inc. and Waymo LLC announced an expansion of their existing partnership last month, on September 13, 2024.
The collaboration aims to bring autonomous ride-hailing services to Austin and Atlanta by early 2025, building on their previous success in Phoenix. Under the agreement, Uber will manage and dispatch a fleet of Waymo’s fully autonomous, all-electric Jaguar I-PACE vehicles, with the fleet size expected to grow to hundreds over time.
The partnership leverages both companies’ strengths, with Uber providing fleet management services and Waymo remaining responsible for the testing and operation of its autonomous driving technology. This strategic alliance has been viewed positively by industry observers, as it combines Uber’s vast user base with Waymo’s advanced self-driving technology.
UBER Gains, TSLA Stumbles in Premarket Trading
As of 6:42 AM EDT on October 11, 2024, (at the time of writing) Tesla’s stock was trading at $223.87 in pre-market, down 6.24% from its previous close of $238.77. The company’s market cap stood at $762.784 billion, with a trailing P/E ratio of 67.05. Tesla’s year-to-date return of -3.91% has underperformed the S&P 500, which is up 21.18% over the same period.
In contrast, Uber’s stock was trading at $81.60 in pre-market, up 4.72% from its previous close of $77.92. Uber’s market cap was $163.705 billion, with a trailing P/E ratio of 84.70. The company has outperformed the S&P 500 with a year-to-date return of 26.56%.
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Tesla Slides and Uber Gains as Robotaxi Event Fails to Assure Investors
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