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Tesla's highly anticipated 'We, Robot' event, aimed at unveiling a robotaxi vehicle and service, fell short of expectations, leaving investors and analysts questioning the company's immediate threat to ride-hailing giants like Uber. While Tesla CEO Elon Musk briefly discussed a robotaxi dubbed the Cybercab, the event lacked concrete details about the car's specifications, production timeline, and the service's rollout strategy. This ambiguity caused Tesla's shares to plummet by nearly 9% the following day, highlighting the market's disappointment with the lack of substantial information.
The underwhelming event, however, proved to be a boon for Uber. Its shares climbed by almost 11% on the same day, seemingly relieved of the perceived threat posed by Tesla's robotaxi ambitions. Investors had previously worried about the potential competition from Tesla, especially after Musk's April announcement of a robotaxi unveiling. However, the lack of a clear and compelling robotaxi vision from Tesla alleviated these concerns, leading to a rebound in Uber's stock price. Several analysts echoed this sentiment, describing Tesla's robotaxi plans as a “toothless taxi” and a “best-case outcome for Uber,” emphasizing the absence of immediate competitive pressure.
Despite the apparent setback for Tesla, the company's ambitions in the robotaxi space remain intact. Musk plans to have the Cybercab in production within a couple of years, targeting a price point below $30,000. The vision is to enable individual buyers to turn these vehicles into a business, potentially disrupting the current ride-hailing landscape. However, this strategy faces numerous challenges. Tesla needs to ensure its robotaxis meet regulatory standards for fully autonomous driving, a process that typically takes years. Additionally, Tesla faces the arduous task of building a robust network of riders and fleet operators, particularly as established ride-hailing platforms like Uber and Lyft have already captured significant market share and customer loyalty. Even if Tesla succeeds in manufacturing and deploying the Cybercab, it must overcome these hurdles to establish a viable and profitable robotaxi service.
Source: Tesla leaves Uber plenty of road