Tesla is set to unveil its new Robotaxi, named "Cybercab." Analysts widely agree that Uber (UBER, Financial) will be a significant player in the autonomous vehicle sector as the industry progresses. Bank of America suggests that Uber's network could reap benefits from the competitive landscape of self-driving cars.
According to analyst Justin Post and his team, the fierce competition among autonomous vehicle companies to develop and enhance their technologies is likely to enhance the value of Uber's network. Uber has recently formed partnerships with companies like Waymo, Cruise, and WeRide, reflecting its strong position in the self-driving market and the intense competition within the industry.
Post emphasizes that Uber is focusing on the vast market opportunities presented by autonomous vehicles, which is expected to yield benefits for multiple stakeholders. Uber anticipates that numerous partners will compete with Tesla (TSLA) on costs and capabilities, and the hybrid model is considered the most likely to meet consumer demands for years to come.
The Tesla event could imply that its self-driving technology may need several more years to achieve Level 4 or 5 autonomy. A potential downside of this event is the risk of investor concerns about deflationary pressures on pricing in the mobility sector due to Tesla's low-cost Cybercab.
Some analysts are taking a cautious stance regarding the threat posed by Uber and Tesla's autonomous taxi platforms. They note that while Uber's strategy of collaborating with automakers and autonomous platforms to offer self-driving ride-hailing services worldwide is sound, the success of these efforts will hinge on real-world execution. Analysts suggest Uber investors should not panic, but caution that underestimating the threat of Tesla's autonomous taxis could prove to be a significant oversight in the long term.
